Jeong Eun-bo, Financial Supervisory Service Chief, Requests Resignations from 14 Executives... Focus on Replacement Level (Comprehensive)

Former Director Yoon Seokheon Analyzes 'Erasing Colors'
Focus on Minor Replacements Over Large-Scale Overhaul

[Asia Economy Reporter Jin-ho Kim] Jung Eun-bo, the new 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 "color" of former chief Yoon Seok-heon. However, rather than a large-scale overhaul, expectations lean toward a minor reshuffle focusing on executives whose terms are about to expire.

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

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

Inside and outside the financial authorities, Chief Jung’s request for resignations is being perceived as somewhat different from past precedents. Given that Chief Jung has been pushing for rapid organizational reform since his inauguration, analysts interpret this as the beginning of erasing the influence of former chief Yoon. In his inaugural speech, Chief Jung clearly stated his intention to take a different direction from Yoon by emphasizing, "Please always remember that the essence of financial supervision lies in support, not regulation."

He is also credited with addressing conflicts with financial companies and the Financial Services Commission, the higher authority, stemming from 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 order of business, it is clear that he will send a strong message of change. Personnel appointments will be the very first button to push in the organizational reform process."

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

Therefore, it is expected that minor personnel changes will be made focusing on executives whose terms are nearing expiration. The term for FSS executives is three years, and among the deputy governors-level officials, Kim Dong-sung, Lee Seong-jae, and Jang Jun-kyung’s terms will expire in January next year. A financial sector official said, "Replacing all executives at the end of a government term could increase internal conflicts rather than reform the atmosphere, which would be a burden. It is more likely that personnel moves will start with those whose terms are about to expire to gauge the mood."

Meanwhile, there is also a view that FSS executive appointments may coincide with appointments of heads of related institutions such as the Financial Security Institute. Kim Young-gi, head of the Financial Security Institute, saw his term expire last April, but the appointment has been delayed due to the vacancy at the FSS chief position. Typically, the head of the Financial Security Institute is appointed from among former deputy governors-level officials of the FSS. 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.