Rumors of Lee Sang-bok and Won Seung-yeon for Financial Supervisory Service Chief

Financial Services Commission Recommends Three Candidates from the Private Sector

[Asia Economy Reporter Park Jihwan] Following the resignation of Yoon Seokheon, Governor of the Financial Supervisory Service (FSS), on the 7th, speculation is mounting around potential candidates for the next FSS Governor position, which is currently vacant, with a focus on private-sector figures from academia and elsewhere.

According to government and financial sector sources on the 27th, the Financial Services Commission (FSC) recently recommended three private-sector candidates: Professor Lee Sangbok of Sogang University Law School, former Korea Institute of Finance President Son Sangho, and Professor Jeong Seokwoo of Korea University’s Business Administration Department. The FSS Governor is appointed by the President upon the FSC Chairman’s recommendation after the FSC passes a resolution on a single candidate.

Among the current candidates, Professor Lee Sangbok is reportedly the frontrunner. Initially, the FSC had recommended former Korea Institute of Finance President Son Sangho as the top candidate, but it is said that his ranking was lowered during the Blue House’s personnel screening process.

Professor Lee is a financial law scholar with a background as a lawyer specializing in economics. He has diverse experience in academia, practical work, and financial policy, including serving as a member of the Securities and Futures Commission and as a professor. Recently, he published a comprehensive financial law book covering all sectors of finance such as banking, insurance, capital markets, and credit. Former President Son served twice as Vice President of the Korea Institute of Finance and briefly as Deputy Governor of the FSS in 2008. He became President of the Korea Institute of Finance in March 2018 and retired this March. Professor Jeong served as a non-standing member of the Securities and Futures Commission from 2013 to 2016 and was president of the Korean Accounting Association last year.

The name of Professor Won Seungyeon of Myongji University, a former Deputy Governor in charge of capital markets at the FSS, is also being mentioned. Former Deputy Governor Won served at the FSS for 2 years and 7 months from November 2017 until his retirement in June last year, making him the candidate most familiar with internal affairs. He is also known to have close ties with the current administration, maintaining relationships with Jang Hasung, former Blue House Policy Chief and Ambassador to China, and former Chief Kim Sangjo. However, a financial authority official said, "While it is not impossible, former Deputy Governor Won often clashed with the FSC over issues such as special judicial police during his tenure, so strong opposition from the FSC is expected."

The Blue House has shown a preference for private-sector figures over government officials for the FSS Governor position. All three previous FSS Governors appointed since the Moon Jaein administration?Choi Heungsik, Kim Gisik, and Yoon Seokheon?were from the private sector. A National Assembly Political Affairs Committee official said, "The Blue House’s current stance is to bring in private-sector figures such as professors rather than bureaucrats for this FSS Governor appointment." Another financial authority official added, "Although the FSS Governor’s term is legally three years, it is common for the administration to reshuffle personnel when the government changes. Given that less than a year remains in the current administration’s term, the likelihood of a government official being appointed is low."

The FSS labor union is opposing the increasing possibility of a professor becoming Governor. Oh Changhwa, Chairman of the FSS Labor Union, stated, "Professor Governors have shown little attachment to the organization and have acted in a way that suggests ‘as long as I survive, it’s fine.’ Within the organization and the union, there is a strong perception that a government official, rather than a professor, should come to resolve issues such as public institution designation, promotion stagnation, and budget shortages."

It is widely expected that the selection process for the FSS Governor will intensify starting next week. With the likelihood of Hong Namgi continuing as Deputy Prime Minister and Minister of Economy and Finance, and Eun Seongsu remaining as FSC Chairman, the FSS Governor position is the only vacancy in the current economic lineup, which is expected to accelerate the appointment process.

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