Financial Supervisory Service Chief Vacancy Already 2 Months... Another Professor Speculated

Financial Supervisory Service Without a Head Faces Pressure from Board of Audit and Inspection and National Assembly
Professor Ha Seong-geun Emerges as New Candidate... 'Internal Promotion' Also Strongly Considered

[Asia Economy Reporter Jin-ho Kim] The vacancy for the Financial Supervisory Service (FSS) Governor has already lasted for two months, and there are expectations that the Blue House will soon complete the appointment process. Following former FSS Governor Yoon Seok-heon, a professor is once again the leading candidate.

According to the financial sector on the 11th, the Blue House is expected to appoint the new FSS Governor as early as next week. Since former Governor Yoon's retirement on May 7, the FSS has been operating under Acting Governor Kim Geun-ik, the Senior Deputy Governor. This is the first time since the establishment of the FSS that the governor position has remained vacant for over two months.

The FSS has recently been suffering from strong aftershocks following the Board of Audit and Inspection's findings that its supervisory actions were inadequate in relation to the private equity fund scandal. The organization faces internal criticism for granting impunity to its management and pressure from the National Assembly to restructure the organization by holding it accountable for supervisory failures.

In response, the Blue House is reportedly conducting final verifications of candidates to quickly stabilize the unsettled internal atmosphere.

In addition to the prominent candidates, Professor Lee Sang-bok of Sogang University Law School and Professor Won Seung-yeon of Myongji University Business Administration Department, recently Professor Ha Sung-geun, Emeritus Professor of Economics at Yonsei University College of Economics and Commerce, has also been added to the list of potential candidates. Professor Ha is an economic expert who served as the 41st President of the Korean Economic Association and as a member of the Bank of Korea's Monetary Policy Committee. He also has experience as a non-standing commissioner at the Financial Supervisory Commission during the Kim Dae-jung administration.

Notably, the FSS labor union, a significant hurdle in the appointment process, is reportedly not strongly opposed to Professor Ha. Unlike former Governor Yoon, who was criticized for lacking political acumen and focusing solely on theory, Professor Ha is highly regarded for his expertise as a financial professional and his experience within government agencies.

The 'internal promotion' card of Senior Deputy Governor Kim Geun-ik is also being seriously considered. Given the priority of a short term and rapid organizational stabilization, this option is seen as having the least resistance both internally and externally. Kim's reception among internal staff is relatively positive, and his background from the Financial Services Commission is viewed as beneficial for harmony among financial authorities.

A financial authority official said, "There is growing concern that the prolonged vacancy of the FSS Governor could disrupt financial supervisory duties," adding, "In light of the recent Board of Audit and Inspection results and the unsettled organization, it seems necessary to expedite the appointment of the FSS Governor."

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