S. Korea’s Yoon Picks Centrist Former Premier to Head Government

(Bloomberg) -- South Korean President-elect Yoon Seok Yeol named a centrist former prime minister to lead his government, as the ex-prosecutor seeks help in navigating the country's polarized politics.

Han Duck-soo, 72, is recognized by all political parties for his experience and expertise, and has held key posts in government, Yoon said in an announcement on Sunday. Han was prime minister from 2007 to 2008 under former progressive President Roh Moo-hyun, before serving as ambassador to the U.S. under conservative Lee Myung-bak.

The decision to tap a veteran political operator with experience working on both sides of South Korea's partisan divide suggests Yoon is seeking to overcome doubts about his ability to deliver. The former prosecutor general has never held elected office before and won by the narrowest margin ever after joining the conservative People Power Party to run against the party of his ex-boss, outgoing President Moon Jae-in.

“There is need to strengthen diplomacy for the interest of the country, and reinforce national defense,” Han said Sunday at a press briefing broadcast on YTN. “The government also needs to respond to mid- to long-term risks that could come from the persistent use of expansionary fiscal policy.”

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The government should maintain a certain level of surplus in South Korea's international balance of payments, and should boost production through education and financial reform, he said. Geopolitical risks including Ukraine and North Korea, along with household debt and an aging society were among risks the country faces, Han said.

Moon's Democratic Party will hold a super majority in the National Assembly at least until the next elections in 2024, posing a big obstacle to any legislative initiatives. Yoon has promised a sharp break from the current administration's policies, including a more market-based economic agenda and a harder-line approach to North Korea.

The incoming president has pledged greater cooperation with South Korea's closest ally, the U.S., including participating in President Joe Biden's initiatives to shore up supply chains between like-minded nations.

Han, who earned a doctorate degree in economics from Harvard University after studying at Seoul National University, led South Korea's free trade agreement negotiations with the U.S. under President Roh. He also headed Seoul's talks with Pyongyang in 2007, when the two sides discussed details of a massive aid package to help rebuild impoverished infrastructure north of the Demilitarized Zone.