[2020 National Audit] Yoon Seokheon "FSS Agrees on the Need for Exchange Inspections"

[Image source=Yonhap News]

[Asia Economy Reporter Ji-hwan Park] Yoon Seok-heon, Governor of the Financial Supervisory Service (FSS), stated on the 13th that he agrees on the necessity of inspections for the Korea Exchange (KRX), which has been pointed out as being in a blind spot of financial authorities' inspections.

Governor Yoon made this remark in response to a related inquiry by Assemblyman Yoo Dong-soo of the Democratic Party of Korea during the FSS's audit held by the National Assembly's Political Affairs Committee that evening.

Assemblyman Yoo urged the FSS to conduct inspections on the Korea Exchange, which is in a blind spot of financial authorities' supervision. In response, Governor Yoon said, "We will consider it positively," adding, "I have thought that it would be good to conduct a comprehensive inspection or necessary inspections on the exchange, which is the flower of the capital market."

According to Assemblyman Yoo, the FSS has conducted only one inspection of the Korea Exchange in the past six years. Compared to the Korea Securities Depository (8 times), Korea Securities Finance Corporation (4 times), and Korea Financial Investment Association (4 times) during the same period, supervision of the exchange has been virtually neglected. Currently, under Article 410 of the Capital Markets Act, the authority to conduct inspections of the Korea Exchange lies with the Financial Services Commission (FSC).

Assemblyman Yoo stated, "Although the authority to conduct inspections of the exchange lies with the FSC, the FSC has not entrusted the FSS with inspections of the exchange, leaving the exchange in an inspection blind spot."

Assemblyman Yoo pointed out, "Since 2015, the FSC has entrusted the FSS with inspections only once, and even that was not an inspection of management and overall business but rather a check on IT security and information protection safety. Therefore, the FSS needs to look into the exchange's overall market management operations." He also requested, "Considering the recent Tokyo Stock Exchange incident, please discuss this matter with the FSC."

This content was produced with the assistance of AI translation services.