FSS Avoids 'Public Institution Designation' Again... Public Operation Committee "Additional Reduction of Senior Positions"

Gongunwi "FSS Recommends Expanding Quantitative Indicator Weight to Around 40%"

[Asia Economy Reporter Jang Sehee] The Financial Supervisory Service (FSS), which bore significant responsibility for supervisory failures in last year's Lime and Optimus private equity fund scandals, avoided designation as a public institution. However, the FSS must additionally prepare stringent organizational efficiency measures, including further reductions in senior positions and the reorganization of overseas offices.

On the 29th, the Ministry of Economy and Finance held a Public Institution Management Committee meeting and announced, "We have decided to defer the designation of the FSS as a public institution but impose strengthened conditions." The Ministry explained that the decision was based on an assessment that the existing deferral conditions were generally being properly implemented.

Accordingly, the FSS will increase the proportion of quantitative indicators from the initial 30% range to about 40%, and performance bonuses must be reclaimed if any fraudulent activities are confirmed during the evaluation process. Additionally, customer satisfaction surveys will be conducted annually, and the results will be reflected in management evaluations.

The Financial Services Commission plans to report detailed implementation plans for the strengthened deferral conditions to the Public Institution Management Committee within the first half of the year. The committee intends to actively consider public institution designation if future performance is inadequate.

Meanwhile, on the same day, the committee newly designated 12 institutions subject to application under Articles 4 and 6 of the Act on the Management of Public Institutions. These institutions include the Construction Technology Education Institute, Architectural Space Research Institute, Spatial Information Quality Management Institute, National Aviation Museum, and Korea Employment and Labor Education Institute. Furthermore, the Korea Inclusive Finance Agency, previously designated as a miscellaneous public institution, was reclassified as a quasi-governmental agency.

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