Lee's sudden dismissal of trade minister called into question amid ongoing issues with U.S.

Questions are mounting over President Lee Jae Myung’s unusual decision to suddenly dismiss Yeo Han-koo, the former vice minister-level trade minister at the Ministry of Trade, Industry and Resources, removing a key trade negotiator at a time when Korea faces a host of sensitive trade issues with the United States. The decision was made quickly, with Industry Minister Kim Jung-kwan abruptly heading to Washington for a visit on Sunday.

The presidential office notified the ministry Friday afternoon that Yeo — the top working-level official overseeing trade negotiations and accorded ministerial-level treatment in negotiations with foreign counterparts — would be dismissed effective Friday at midnight, according to multiple ruling bloc officials on Sunday.

The decision was so sudden that only a handful of people within the presidential office knew about it in advance. The Blue House declined to explain the reason to the press after informing his dismissal, saying that it is “difficult to confirm matters concerning personnel decisions.”

Government officials have described Yeo’s dismissal as “extremely unusual,” given that he had overseen trade issues with the United States, including serving as the counterpart to the U.S. trade representative during Korea-U.S. tariff negotiations last year. A number of sensitive trade issues remain unresolved, including matters involving Section 301 of the U.S. Trade Act, Coupang and Korean investment projects in the United States.

As speculation mounted, a senior government official said the dismissal was “unrelated to Korea-U.S. tariff negotiations,” raising the possibility that a personal matter played a role.

Allegations of Yeo's misconduct began circulating recently in the form of unverified rumor sheets. Yeo's representative refuted the rumors saying they were “clearly different from the actual facts” and that legal action was under consideration.

With the exact reason for Yeo’s dismissal still unclear, some in the ruling bloc have pointed to remarks that Lee made during a Cabinet meeting Tuesday.

“The vast majority of public officials work hard and faithfully serve the people, but among them, there are some who abuse the authority they have been given to pursue private interests or fail to properly do what they are supposed to do,” Lee said. “Although these cases involve an extremely small number of people, those who are irresponsible or incompetent or engage in misconduct or corruption must also be held strictly accountable.”

Yeo is not the first deputy minister-level official to be summarily dismissed under the Lee administration.

Former Vice Agriculture Minister Kang Hyoung-seok was dismissed in December last year, less than six months after being appointed, following an inspection over allegations that he improperly exercised his authority. Former Korea Forest Service Minister Kim In-ho was dismissed in February, about six months after taking office, following a drunk driving accident.

Former National Fire Agency Commissioner Kim Seung-ryong underwent an inspection in March on Lee’s orders over allegations including overseas trips of a recreational nature. After explaining most of the allegations, Kim voluntarily stepped down.

The presidential office, however, has declined to confirm whether Yeo was subject to an inspection.

The trade minister is a deputy minister-level political appointee but is accorded ministerial-level status when negotiating with foreign governments. Some observers have raised concerns that Yeo’s sudden departure could make it more difficult for Korea to respond swiftly as U.S. President Donald Trump ramps up pressure over Korean investment in the United States ahead of U.S. midterm elections in November.

“Investment negotiations with the United States have primarily been led by Trade, Industry and Resources Minister Kim Jung-kwan,” a senior ruling bloc official said. “The challenges are intensifying, but we are responding through close communication.”

Meanwhile, Industry Minister Kim departed for Washington earlier on Sunday amid the series of unresolved trade issues between the two countries, according to a Yonhap report.

The United States is expected to announce the results of its overproduction investigation by the end of the month. Washington also announced a set of import tariffs from 60 trading partners after an investigation into forced labor under Section 301 of the Trade Act. Korea has been subject to a 12.5 percent tariff as a result.

BY OH HYUN-SEOK [yoon.soyeon@joongang.co.kr]