[2020 National Audit] Yoon Seok-heon "Need to Improve Financial Supervision System... Unable to Fully Utilize Capabilities"

[Asia Economy Reporter Minji Lee] Yoon Seok-heon, Governor of the Financial Supervisory Service (FSS), stated that improving the financial supervision system is necessary for the FSS's role to be persuasive in the market.

On the 13th, Hong Seong-guk, a member of the Democratic Party of Korea, argued at the National Assembly's Political Affairs Committee audit, "The FSS must deeply investigate why the same types of financial accidents, such as the Diamond Fund, KIKO, and DLF incidents, have repeated over the past 20 years."

Capture of the Political Affairs Committee's National Assembly Inspection

Following this, Representative Hong criticized, "If the FSS had possessed expertise and made appropriate judgments at an early stage regarding recent issues like accounts receivable (Optimus Fund fraud), these problems would not have occurred," adding, "At a time when everything is becoming financialized, the FSS must increase communication with the market and strive to build expertise."

In response, Yoon Seok-heon, Governor of the FSS, said, "(Personally) I believe the problem was not due to a lack of expertise among FSS staff, but rather that despite having excellent personnel, their capabilities were not fully utilized," and added, "I hope many measures to enhance the effectiveness of financial supervision will be proposed."

He also emphasized, "Earlier, during my initial period as FSS Governor, we made efforts by creating a task force related to internal control, but it was not successful," and stressed, "In a situation lacking personnel and resources, improving the financial supervision system is necessary for the FSS's sanctions to be persuasive."

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