After the National Assembly Audit, the Previously Blocked 'Financial Sector Personnel Changes' Expected to Gain Momentum

Three of Four Deputy Governors at FSC Replaced
Lee Chan-woo, Chairman of Gyeongsangnam-do Economic Innovation Promotion Committee, Appointed as Senior Deputy Governor

Lee Chan-woo, Deputy Minister for Policy Coordination, Ministry of Economy and Finance

[Asia Economy Reporter Jin-ho Kim] Personnel changes in the financial sector, which were delayed after the National Assembly's Political Affairs Committee audit, are expected to gain momentum. The Financial Supervisory Service (FSS), which faced strong criticism over the private equity fund scandal, has announced a major executive reshuffle following the appointment of Director Jeong Eun-bo. Once the FSS executive appointments are completed, personnel changes at related institutions such as the Financial Security Institute are also expected to proceed sequentially.

According to financial authorities and the financial sector on the 21st, the FSS will appoint three deputy directors on the 22nd of this month, including the Senior Deputy Director and those in charge of banking, small and microfinance, and financial investment sectors.

Lee Chan-woo, Chairman of the Gyeongsangnam-do Economic Innovation Promotion Committee (pictured), has been nominated as the Senior Deputy Director. Chairman Lee is a former 31st Administrative Examination pass who spent a long time at the Ministry of Strategy and Finance. He is known to be a close associate of Director Jeong, having worked together at the Ministry of Strategy and Finance. He is also the younger brother of Lee Yong-woo, a member of the Democratic Party of Korea. Kim Geun-ik, the current Senior Deputy Director who led the FSS before Director Jeong’s appointment, is expected to move to the Korea Exchange.

Kim Jong-min, the current Deputy Director for Planning and Management, is expected to be appointed as Deputy Director in charge of banking and small and microfinance sectors, while Kim Dong-hoe, the current Deputy Director for Financial Investment, is expected to be appointed as Deputy Director in charge of the financial investment sector. Kim Eun-kyung, Director of the Financial Consumer Protection Department, is expected to remain in her position.

Personnel changes for deputy directors and auditors, which were initially expected to be made alongside the deputy director appointments, are now expected to take place around mid to late next month.

Deputy Directors Kim Dong-sung, Lee Sung-jae, and Jang Jun-kyung, whose terms expire in February next year, are expected to be replaced. The auditor position at the FSS, which has been vacant for seven months since the term of former auditor Kim Woo-chan expired, was initially expected to be filled by Jeon Gwang-chun, First Deputy Auditor of the Board of Audit and Inspection. However, Jeon recently moved to become Vice President of San-eun Capital, a subsidiary of the Korea Development Bank. Accordingly, the FSS is reportedly actively searching for other candidates.

Excluding the currently vacant auditor position, the FSS has a total of 14 executives (4 deputy directors and 10 deputy directors). Deputy directors at the FSS are appointed by the Financial Services Commission upon the recommendation of the FSS Director. Deputy directors are directly appointed by the Director but require personnel screening by the Blue House.

Director Jeong’s decision to replace three out of four deputy directors at once and push for a major executive reshuffle is analyzed as a judgment that a large-scale personnel overhaul is inevitable, considering the strong criticism from both the political and financial sectors over the private equity fund scandal. In particular, the recent loss in the derivative-linked fund (DLF) lawsuit filed by Woori Financial Group is also believed to have influenced this decision. Since the court accepted the view that the financial supervisory agency imposed excessive disciplinary measures, personnel changes holding those responsible accountable have become unavoidable.

Following the FSS executive reshuffle, chain personnel changes are also anticipated at the Financial Security Institute and the Korea Inclusive Finance Agency. Kim Young-ki, Director of the Financial Security Institute, whose term expired last April, is still in office. Given the frequent transfers of former FSS deputy directors, names such as Choi Sung-il, FSS Deputy Director, Yoon Chang-ui, former FSS Deputy Director, and Lee Sung-jae, Deputy Director, are being strongly mentioned. The term of Lee Gye-moon, Director of the Korea Inclusive Finance Agency, also expired on the 4th of this month. The position of Director at the Korea Inclusive Finance Agency is recommended by the Financial Services Commission and appointed by the President.

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