[Reporter’s Notebook] Is the New Financial Supervisory Service Chief Piecing Together the Gwannpia Puzzle?

[Image source=Yonhap News]

[Asia Economy Reporter Ji Yeon-jin] "If you do nothing, nothing will happen." This phrase encouraging a proactive life is understood quite differently in the bureaucratic society.

It has been four days since Yoon Seok-heon, former Financial Supervisory Service (FSS) chief, retired on the 7th after his term expired without a successor being appointed. Amid rampant speculation about the next FSS chief, there is growing emphasis on the possibility of a puzzle-like rearrangement following changes in the economic lineup. Names such as Koo Yoon-chul, Director of the Office for Government Policy Coordination, Eun Sung-soo, Chairman of the Financial Services Commission, and Ko Hyung-kwon, Ambassador to the Organisation for Economic Co-operation and Development (OECD), are being mentioned as successors to Hong Nam-ki, Minister of Strategy and Finance and Deputy Prime Minister. It is suggested that the economic lineup reshuffle might be a chain movement where the economic ministries’ reshuffle is prioritized first, followed by filling the remaining positions with officials who have been sidelined. For the new FSS chief, candidates like Jung Eun-bo, South Korea-US defense cost-sharing negotiation representative, Kim Yong-beom, former 1st Vice Minister of Strategy and Finance, and Kim Jong-ho, former Senior Secretary for Civil Affairs at the Blue House, are being floated. There are also economic officials hoping for overseas postings, making this puzzle-like reshuffle reportedly quite challenging.

The Moon Jae-in administration initially pursued "de-bureaucratization." In the early cabinet, most positions except for some like the Minister of Strategy and Finance were filled by politicians, civic group members, and professors. However, as the term neared its end, reliance on bureaucrats increased. Economic officials now occupy key posts, including Lee Ho-seung’s promotion to Chief Presidential Secretary for Economic Affairs, succeeding former Blue House Policy Chief Kim Sang-jo.

Unlike the Financial Services Commission, a government ministry, the Financial Supervisory Service was established as a public corporation to minimize government interference and ensure independent supervision of financial companies. Former FSS chief Yoon, a progressive economist, is credited with drafting the blueprint for the current government’s financial reforms and is known for strongly asserting the independence of the financial supervisory body, often clashing with the Financial Services Commission. Since his appointment, he led the banking sector’s compensation for companies affected by the foreign exchange derivative product KIKO and held financial institutions strongly accountable in the Lime and Optimus fund scandals. There are concerns that his retirement may cause the momentum of such financial supervisory work to falter. This is why there is apprehension about the economic officials’ “musical chairs” over positions.

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