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ABOUT MOSF

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HISTORY

Paving the way to a prosperous economic future..
The Ministry traces its origins back to the Planning Administration and the Ministry of Finance launched on July 17, 1948, with the establishment of the government of the Republic of Korea. The Ministry of Finance was responsible for policies, standards, and procedures governing taxation, treasury operations, finance, currency, and foreign exchange while the Planning Administration, which later changed its name to the Economic Planning Board in 1961, was in charge of government budgeting and economic development plans.

The two merged in 1994 into one unified organization, the Ministry of Finance and Economy. However, in the wake of the 1997 Asian financial crisis, the Ministry was again reorganized into the Ministry of Finance and Economy and the Ministry of Planning and Budget.

With the new administration taking office in 2008, the Ministry of Finance and Economy and the Ministry of Planning and Budget merged to form today’s Ministry of Strategy and Finance that can serve as one roof where economic policies, the nation’s finances, fiscal strategies, and a tax system are effectively managed.

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.

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