Next Financial Supervisory Service Chief Likely a Professor... Lee Sang-bok vs. Won Seung-yeon in Two-Way Race

Cheongwadae to Announce Possibly Next Week
Private Sector Candidate Likely Despite Union Opposition

[Image source=Yonhap News]

[Asia Economy Reporter Jin-ho Kim] Attention in the financial sector is focused on the next Financial Supervisory Service (FSS) Governor. As the reshuffle of economic ministries enters its final stages, it is reported that the Blue House will complete the appointment of the FSS Governor soon. Despite opposition from the FSS labor union, a candidate from the private academic sector is once again considered the most likely choice.

According to the financial sector on the 5th, the Blue House may appoint the next FSS Governor as early as next week. The FSS Governor is appointed by the President upon the recommendation of the Financial Services Commission (FSC) Chairman.

The FSC initially recommended three candidates: Professor Lee Sang-bok of Sogang University Law School, former Korea Financial Investment Association President Son Sang-ho, and Professor Jung Seok-woo of Korea University Business School. However, it is reported that former President Son and Professor Jung declined during the Blue House’s vetting process.

Recently, Professor Lee has been evaluated as the most likely candidate, with Professor Won Seung-yeon of Myongji University also mentioned as a contender. Professor Lee is a financial law scholar with a background as a lawyer specializing in economics. He has worked in academia and practice, including as a member of the FSC’s Securities and Futures Commission and in financial policy. Former Deputy Governor Won is regarded as well-versed in internal affairs, having served at the FSS for two years and seven months.

A financial sector official said, "It is said that the FSC is pushing for Professor Lee, while the Blue House prefers Professor Won," adding, "Since the position has been vacant for a month, the Blue House is expected to finalize the appointment as soon as possible."

Regarding the fact that all leading candidates are from the private academic sector, there are rumors within government circles that the Blue House does not want to appoint a bureaucrat as FSS Governor. The three previous FSS Governors appointed since the Moon Jae-in administration?Choi Heung-sik, Kim Ki-sik, and Yoon Seok-heon?were all from the private sector. A financial authority official said, "It is understood that the Blue House does not want a bureaucrat," and added, "The relatively short term of about one year is also cited as a reason why a private sector candidate is more likely than a bureaucrat."

On the other hand, the labor union is opposing the appointment. After conflicts with former Governor Yoon Seok-heon, who was also from academia, resistance to appointing a professor as Governor has reached its peak. In fact, within the FSS, there is a growing preference for a powerful bureaucrat, citing precedents where the three previous heads repeatedly clashed with the FSC and suffered disadvantages in budget and personnel support.

On the 31st of last month, the union issued a statement saying, "If President Moon Jae-in truly wants to reform the FSS, we ask him to give up the ambition of appointing a professor as Governor." The union argues that professors tend to be stuck in theory, lack political sensitivity, and have limitations in communicating with the financial industry. They cited the handling of the private equity fund scandal, where the FSS focused only on disciplining financial companies and CEOs, leading to ongoing litigation with the industry and a decline in the FSS’s leadership authority as a representative example.

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