South Korea approves bill to reform finance ministry and prosecutors’ office

The legislation transfers the finance ministry’s budget authority to a new office overseen by the prime minister, effectively reducing the ministry’s control. The Ministry of Trade, Industry, and Energy will also separate its energy division, which will merge with the Ministry of Environment. In a major judicial shake-up, the prosecution service will be stripped of its investigative powers, which will now fall under a newly created body. However, it will retain the authority to prosecute cases. 

The reforms reflect President Lee Jae Myung’s campaign pledge to curb excessive power within certain state institutions. The newly restructured finance ministry is expected to be launched in January. 

Meanwhile, the administration is pursuing an expansionary fiscal strategy, with government spending in next year’s budget projected to grow at the fastest pace in four years to stimulate economic growth.