Speeding Up the Appointment of the Next Financial Supervisory Service Chief...Private Sector Candidate Favored (Comprehensive)

Economic Line Expected to Remain, Financial Supervisory Service Appointment Process to Accelerate
"Cheong Prefers Private Sector Personnel Over Bureaucrats"
Voices Within Financial Supervisory Service Favor Bureaucrats Raised

[Image source=Yonhap News]

[Asia Economy Reporter Jin-ho Kim] As the Blue House hinted at the possibility of retaining Deputy Prime Minister for Economy and Minister of Strategy and Finance Hong Nam-ki, the financial sector's attention is focusing on the next Financial Supervisory Service (FSS) Governor. With Eun Sung-soo, the Financial Services Commission (FSC) Chairman who was mentioned as a successor to Deputy Prime Minister Hong, expected to remain in his position, there is speculation that the government will accelerate the appointment of the FSS Governor, which had been postponed. It is also reported that a civilian candidate is likely to be favored again for the next FSS Governor.

According to government and financial circles on the 21st, voices within the financial authorities are increasingly calling for an expedited appointment of the next FSS Governor. Initially, Eun was considered as Deputy Prime Minister Hong's successor, while former First Vice Minister of Strategy and Finance Kim Yong-beom and Jeong Eun-bo, South Korea-US defense cost-sharing negotiation ambassador, both government officials, were strong candidates for the next FSC Chairman.

However, President Moon Jae-in emphasized on the 18th that the economic team, centered on Deputy Prime Minister Hong, should come together once again, and Lee Cheol-hee, Senior Secretary for Political Affairs at the Blue House, stated that there would be no personnel screening related to additional cabinet reshuffles, effectively indicating the retention of both individuals.

With the economic ministry reshuffle plan sinking below the surface, the delayed appointment of the next FSS Governor is expected to gain momentum. This is due to concerns about a work vacuum at the FSS, which faces major issues such as comprehensive inspections and sanctions on private equity funds. The FSS Governor, a vice-ministerial level position, is appointed by the President upon the recommendation of the FSC Chairman after a resolution by the FSC. A financial authority official said, "Now that the position of the FSC Chairman, who holds the key, has been clarified, the appointment of the FSS Governor is expected to gain momentum," adding, "Considering the importance of the FSS's role, a decision could be made as early as next week or at the latest by next month."

FSC Recommends Three Civilian Candidates Including Former Korea Institute of Finance President Son Sang-ho

A civilian candidate is likely for the next FSS Governor. The FSC recently recommended three civilian candidates for the FSS Governor position: Son Sang-ho, former President of the Korea Institute of Finance; Lee Sang-bok, professor at Sogang University Law School; and Jeong Seok-woo, professor in the Department of Business Administration at Korea University. The names of Kim Eun-kyung, head of the FSS Financial Consumer Protection Department, and Jeong Jae-wook, former CEO of KDB Life Insurance, have also been mentioned.

Regarding the FSC selecting only civilian candidates, there are rumors in government circles that the Blue House does not want a bureaucrat to be appointed as FSS Governor. All three previous FSS Governors appointed since the Moon Jae-in administration?Choi Heung-sik, Kim Ki-sik, and Yoon Seok-heon?were civilians. Another financial authority official said, "It is understood that the Blue House does not want a bureaucrat," adding, "The relatively short term of about one year is also cited as a reason why a civilian candidate is more likely than a bureaucrat."

Former government officials Kim Yong-beom, ex-First Vice Minister of Strategy and Finance, and Jeong Eun-bo, South Korea-US defense cost-sharing negotiation ambassador, who were mentioned as candidates for the next FSC Chairman, are also being considered. However, it is said that neither is particularly eager for the FSS Governor position. A financial sector official said, "Although moving from FSS Governor to FSC Chairman is an option, it is unprecedented and thus less realistic," adding, "More weight is placed on seeking the next FSC Chairman position or other future opportunities rather than the current FSS Governor position, which has a one-year term."

Meanwhile, within the FSS, there is a growing preference for a bureaucrat. Citing precedents where the previous three FSS Governors repeatedly clashed with the FSC and suffered disadvantages in budget and personnel support, there is a spreading sentiment favoring a powerful bureaucrat. Especially among younger employees, there are strong voices that professor candidates lacking political acumen should be excluded.

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