[Reporter’s Notebook] Unusual Union Resignation Pressure... Financial Supervisory Service Chief Stands Firm on 'Myeon'

Financial Supervisory Service Union Pressures Director Yoon Seokheon to 'Resign Voluntarily' Over Promotion of 2 Involved in Hiring Corruption
Controversy Over Director Yoon's Reappointment Sparks Backlash

[Image source=Yonhap News]

[Asia Economy Reporter Wondara] "Yoon Seok-heon, the Financial Supervisory Service (FSS) Governor, should stop embarrassing the FSS and resign voluntarily. If he resists, it will be difficult for him to retire peacefully." (FSS Labor Union)

The internal organization of the FSS is shaken over the future of Governor Yoon Seok-heon, whose term expires this May. The labor union is pressuring him to announce his position by the 5th of this month, demanding his resignation due to irresponsible organizational management and personnel failures. It is unusual for the union to call for the resignation of a sitting governor, and this backlash follows Yoon’s recent personnel reshuffle last week, which included promotions for two individuals involved in hiring corruption.

The FSS’s credibility as a supervisory agency was severely damaged in 2017 when some employees were implicated in a hiring corruption scandal. The morale of staff responsible for financial supervision plummeted, and audits by the Board of Audit and Inspection intensified. Employees must reduce the number of grade 3 or higher positions to below 35% by 2024 and endure penalties such as bonus cuts.

The financial sector is also watching this personnel move with sharp eyes. There are criticisms that the FSS, which is responsible for fairness in the financial market, is being lenient toward itself. The FSS is currently conducting disciplinary review committees regarding the suspension of redemptions in private equity funds such as Lime and Optimus. CEOs of banks, including Sohn Tae-seung, Chairman of Woori Financial Group, have received preliminary notices of 'suspension of duties,' resulting in a wave of heavy sanctions. There has been criticism that the FSS is shifting responsibility onto financial companies without reflecting on its own supervisory failures.

The so-called 'reappointment theory' of Governor Yoon, mentioned by some, has also sparked controversy. Among the 13 past FSS governors, none have been reappointed. Only two governors, Yoon Jeung-hyun and Kim Jong-chang, completed their full terms. The union stated, "Recently, rumors have circulated that after the approval rating of Lee Nak-yeon, leader of the Democratic Party, declined and that of Lee Jae-myung, Governor of Gyeonggi Province, rose, Governor Yoon suddenly met with Lee Jae-myung earlier this year," criticizing that "Governor Yoon is promoting his own reappointment agenda."

Despite the organizational turmoil, Governor Yoon remains silent. He is no longer Professor Yoon Seok-heon who taught students but the head of the financial prosecution agency who must unite a divided organization and establish the stature of the financial supervisory institution. His leadership is needed now more than ever.

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