Controversy Over Issuing Corporate Credit Cards to Dispatched Employees from Financial Public Institutions and Financial Authorities

Yoon Chang-hyun, People Power Party Lawmaker: "FSS Dispatch System Used by FSC as Needed Must Be Improved"
FSS Explains: "Overtime Meal Expenses Were for Reimbursement, Used with Acquaintances"

[Asia Economy Reporter Wondara] It has been confirmed that financial public institutions issued and allowed the use of corporate cards to employees dispatched from financial supervisory agencies.

According to the office of Yoon Chang-hyun of the People Power Party on the 26th, last year, Financial Public Institution A issued corporate cards to 9 dispatched employees, including 5 from the Financial Services Commission, 1 from the Financial Supervisory Service, 1 from the Office for Government Policy Coordination, and 1 from the prosecution, and allowed their use. This company issued corporate cards to 7 dispatched employees in 2017, 12 in 2018, and 12 in 2019.

Financial Public Institution B also issued corporate cards to 5 employees last year, including 3 from the Financial Supervisory Service, 1 from the Financial Services Commission, and 1 from the Seoul Southern District Prosecutors' Office, and allowed their use. This financial public enterprise issued corporate cards to 3 dispatched employees in 2017, 1 in 2018, and 4 in 2019.

The Financial Services Commission, Financial Supervisory Service, and prosecution create major financial policies and perform core financial supervisory tasks such as account tracking and supporting investigations of specialized private equity fund operators. These institutions also share the commonality of being agencies involved in 'parachute appointment controversies.' In last year's national audit, Financial Public Institution A was intensely questioned regarding the high salary of its new president, parachute appointment controversies, and the Optimus scandal. Financial Public Institution B faced criticism for parachute appointments in financial public enterprises after appointing a ruling party member as its new auditor in November last year.

In the financial sector, criticism arises that allowing financial public institutions, which are private organizations, to dispatch employees to financial authorities and issue corporate cards for their use constitutes a serious ethical and moral violation regardless of the amount used. There is also a possibility that this violates the Improper Solicitation and Graft Act, known as the Kim Young-ran Act, and the Public Officials Conflict of Interest Prevention Act.

Representative Yoon stated, "The current dispatch system, where the Financial Supervisory Service and Financial Services Commission call upon dispatched employees as needed, must be improved," and added, "Dispatch reviews should be regularized semiannually, and the authority to review should be handled by higher-level personnel organizations such as the Ministry of Economy and Finance or the Ministry of Personnel Management, not by the receiving institution."

In this regard, the Financial Supervisory Service explained, "Institution A issued corporate cards to dispatched employees uniformly regardless of the dispatching institution for purposes such as reimbursing overtime meal expenses," but clarified, "Although corporate cards were used with personally acquainted employees who were dispatched together, there was no use of corporate cards during meals with employees of the Financial Supervisory Service’s specialized private equity fund dedicated inspection team, which is the dispatching agency."

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