Yoon Seokheon Denies Government Responsibility in Private Equity Fund Scandal... "Not the Traffic Police's Fault for Signal Violation"

[Image source=Yonhap News]

[Asia Economy Reporter Park Sun-mi] Yoon Seok-heon, Governor of the Financial Supervisory Service (FSS), deflected responsibility for the financial authorities' failure to prevent a series of private equity fund accidents by comparing it to "traffic signal violations not being the police's responsibility."

On the 17th, during the plenary session of the National Assembly's Political Affairs Committee, Yoon responded to criticism from Kim Hee-gon, a member of the People Power Party, regarding the financial authorities' negligence in managing the private equity fund crisis, stating, "The Board of Audit and Inspection is currently investigating the FSS." He added, "While the FSS does bear some responsibility for the private equity fund incident, it cannot be considered the party most responsible. The sales companies that sold the products improperly to consumers bear greater fault."

Rep. Kim pointed out that, in relation to the private equity fund incident, there were institutional loopholes that made it difficult for banks, as sales companies, to approach private equity fund management systemically. He criticized the financial authorities for creating these institutional loopholes and noted that hastily shifting the responsibility for the problematic private equity fund sales onto the CEOs of financial companies does not look good.

In response, Governor Yoon likened the situation to "If someone violates a traffic signal, the traffic police cannot be held fully responsible," and said, "We also face difficulties." Regarding criticism that the FSS is rushing the disciplinary hearings, he explained, "The FSS must consider consumer compensation, and for that, finalizing disciplinary actions is necessary, so we are conducting the disciplinary hearings. I agree that there is no need to rush."

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