Ministry of Strategy and Finance (MOSF)

History

1948
In 1948, three years after gaining independence from Japan, the Korean government was set up
and it established the Ministry of Finance and the Economic Planning Board. The Ministry of
Finance took charge of designing tax, financial and monetary policies as well as managing
state-owned property and exchange rates. On the other hand, the Economic Planning Board was
empowered in 1961 and assumed an important mandate of designing 5 year economic
development plans in addition to its usual functions such as managing the government's budget and
securing foreign loans.

1994
In 1994, as the need arose for an integrated approach to implement the government's functions on
economic affairs in an efficient and coherent way, the Economic Planning Board and the Ministry of
Finance was merged into the Ministry of Finance and Economy (MOFE).

1998
In 1998, in a response to the financial crisis, the MOFE's functions were separated and transferred
to other Ministries so as to mitigate the over-concentration of decision making authority by MOFE.
Its budgetary authority was transferred to the National Budget Administration, its financial
supervision authority to the Financial Supervisory Commission, and its trade negotiating authority to
the Ministry of Foreign Affairs and Trade.

1999
In 1999, the Planning and Budget Committee and the National Budget Administration was merged
into the Ministry of Planning and Budget (MPB).

2008
In 2008, the Ministry of Finance and Economy (MOFE) and the Ministry of Planning and Budget
(MPB) was again merged into the Ministry of Strategy and Finance (MOSF) in order to put under
one roof fiscal policy functions and inter-ministerial policy coordination. On the other hand, the
MOFE's authority on financial policies regarding the financial market was transferred to the
Financial Services Commission.

Mission

  • Planning and coordination of the mid- to long-term socio-economic development goals and setting
    economic policy direction on an annual basis
  • Distributing resources effectively and assessing the effectiveness of budget execution
  • Planning/reforming Korea's tax policy and system
  • Planning and management of policies for treasury, government properties, government accounting
    and the national debt
  • Coordination of policies for foreign currency transactions and international finance
  • Enhancement of international cooperation and promotion of inter-Korean economic exchanges
    and cooperation
  • Management and monitoring of public institutions' operation