Jung Eun-bo, Head of the Financial Supervisory Service, Initiates Organizational Reform... Requests Resignation Letters from All Executives

Former Director Yoon Seokheon’s 'Erasing Colors' Evaluation
Emphasis on Minor Replacements Over Large-Scale Overhaul

Jung Eun-bo, the newly appointed Governor of the Financial Supervisory Service, delivering a speech at the inauguration ceremony held on the 6th at the FSS headquarters in Yeouido, Seoul.
[Photo by Financial Supervisory Service]

[Asia Economy Reporter Kim Jin-ho] Jeong Eun-bo, the newly appointed Financial Supervisory Service (FSS) chief, has begun accelerating efforts to reform the organizational atmosphere. Starting with a demand for all executives to submit collective resignations, it is being seen as an attempt to erase the influence of former chief Yoon Seok-heon. However, rather than a large-scale overhaul, it is expected that only minor replacements will be made, focusing on executives whose terms are about to expire.

According to financial authorities on the 12th, Chief Jeong recently requested all FSS executives to submit their resignations. Currently, the FSS has a total of 14 executives, including 4 deputy chiefs and 10 deputy deputy chiefs.

It is customary for the FSS to request collective resignations as a formality to reaffirm trust when a new chief takes office. Former chiefs Choi Heung-sik and Yoon also requested resignations from executives at the deputy deputy chief level and above.

Inside and outside the financial authorities, there is a perception that Chief Jeong’s request for resignations differs significantly from past precedents. Given that Chief Jeong has been pushing for rapid organizational reform since his inauguration, it is analyzed that efforts to erase former Chief Yoon’s influence have begun. In his inaugural speech, Chief Jeong clearly stated his intention to take a different direction from former Chief Yoon by saying, "Please always remember that the essence of financial supervision lies in support, not regulation."

He is also evaluated to be addressing conflicts with financial companies and the Financial Services Commission, the higher authority, caused by supervisory failures related to the private equity fund scandal and the sanctions-focused approach. A financial authority official said, "Since he emphasized redefining the direction of financial supervision as his first statement upon taking office, it is clear that he will send a strong message of change," adding, "Personnel changes among executives will be the very first button in the organizational reform process."

However, within the financial sector, there is a forecast that even if Chief Jeong requests collective resignations, a large-scale personnel reshuffle will be difficult. This is because some degree of term guarantee for executives is necessary to maintain organizational stability.

Therefore, it is expected that minor personnel changes will be made mainly among executives whose terms are nearing completion. The term for FSS executives is three years, and the terms of deputy deputy chiefs Kim Dong-sung, Lee Seong-jae, and Jang Jun-kyung will expire in January next year.

Meanwhile, there is also a view that FSS executive personnel changes may coincide with appointments of heads of related institutions such as the Financial Security Institute. Kim Young-gi, head of the Financial Security Institute, had his term expire in April, but the appointment has been delayed due to the vacancy in the FSS chief position. Typically, the head of the Financial Security Institute is appointed from among former FSS deputy deputy chiefs. Deputy deputy chiefs Kim Dong-sung and Lee Seong-jae, whose terms are about to expire, are being mentioned as potential successors.

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