Yeo Han-koo (여한구), the working-level chief overseeing trade negotiations with the United States, has been dismissed. The Ministry of Trade, Industry and Energy said on Aug. 15 that President Lee Jae-myung ordered Yeo removed from office, effective from midnight that day. Such a dismissal, in which an appointing authority unilaterally strips a civil servant of status, is a rare step for a vice-minister-level political appointee. The reason was not disclosed.

The ministry drew a line on explaining the background. A ministry official said political appointments fall under the appointing authority's powers and political judgment, and it would be inappropriate for the ministry to comment on the background. The official said the ministry was doing its utmost to ensure there is no disruption to pending trade issues. Yeo, now former chief, is known to have conveyed a position that the allegations raised are untrue and that he would consider legal action against distorted claims.

The timing of the replacement has drawn attention. The United States has imposed a 12.5 percent tariff on South Korea under Section 301 of its trade law, citing the use of forced-labour products, and it is also conducting an additional tariff investigation related to overproduction. The South Korean government has been responding to keep the combined rate of the two tariffs from exceeding 15 percent. U.S. pressure has also grown as a $200 billion investment in the United States under a South Korea-U.S. agreement has been delayed.

Work had continued normally until just before the dismissal. Yeo attended an emergency economic headquarters meeting and a meeting of economy-related ministers held at the Government Complex Seoul on Aug. 13. In a schedule distributed on the afternoon of Aug. 14, the ministry announced he would attend a Cabinet meeting on Aug. 18, and he was also scheduled to attend a performance management task force meeting for normal economic events on Aug. 20.

Yeo served as director general for trade policy and later as head of the Trade Negotiations Bureau under the Moon Jae-in administration, and was appointed again as trade negotiations chief after the Lee Jae-myung administration took office. In June last year, he led the South Korea-U.S. tariff talks as head of a task force overseeing a U.S. negotiation package covering trade, industry and energy. He also handled work on responding to global trade rules and strengthening supply chain security.

With no successor named and the post now vacant, disruptions are expected for the time being in the continuity of negotiations with the United States. The ministry plans to activate an emergency work system led by Vice Minister for Trade Park Jung-sung to minimise gaps in pending issues. Many in and outside the government see the move as unrelated to trade performance and believe it is likely that a personal matter outside work may have had an impact.