[Exclusive] Shinbo Appoints Executive Director and Auditor... Union Opposes 'Closed-Door Personnel Decisions'

Executive Director is a Financial Services Commission Manager-Level Appointment, Auditor is from Private Bank
Labor Union 'Strongly Opposes'... "Secretive Appointment and Expertise Issues"

[Asia Economy Reporter Kim Jin-ho] The Korea Credit Guarantee Fund (KODIT), a policy financial institution, is embroiled in controversy over the ‘nomination rumors’ for its standing director and auditor positions. It has been reported that a mid-level official from the Financial Services Commission and a former bank official with no policy finance experience have been nominated for the standing director and auditor posts, respectively. Inside KODIT, voices are growing that the ‘parachute appointments’ have gone too far during the final phase of the Moon Jae-in administration, and it is expected that controversies will arise during the upcoming appointment process.

According to financial circles on the 2nd, KODIT plans to finalize the successors to Standing Director Park Chang-gyu and Auditor Shin Dae-sik as early as this month. The terms of Park, the standing director, and Shin, the auditor, expired on October 13 and October 14, respectively.

While the appointment process has been somewhat delayed, nomination rumors are circulating both inside and outside KODIT. A source familiar with internal affairs said, "I understand that a mid-level official from the Financial Services Commission and a former CEO of a Woori Financial Group affiliate have been nominated as successors to Standing Director Park and Auditor Shin."

The KODIT labor union is vocally opposing the nomination rumors, shouting ‘Firm opposition to parachute appointments.’ The union is protesting that the standing director position is being divided between the Ministry of Economy and Finance and the Financial Services Commission. Traditionally, the standing director’s basic term is two years, with one renewal (one year), usually totaling three years. The fact that the current Standing Director Park is leaving immediately after completing two years is unprecedented, raising suspicions. Park is a former Ministry of Economy and Finance official.

A union official criticized, "Ignoring tradition and unilaterally swapping positions is a typical closed-door personnel move among central government officials. Holding an executive candidate recommendation committee internally to justify the nomination of the standing director is merely for show."

The official also pointed out, “Since the nominated auditor has only been in the private sector, there may be a lack of understanding of policy finance.” The auditor position at KODIT is filled by an internal candidate search committee, after which the Ministry of Economy and Finance recommends candidates, and the president decides on the appointment.

Meanwhile, concerns about the chronic ‘parachute appointments’ that recur toward the end of administrations are rising in the financial sector. In September, controversy arose when a former Blue House administrative officer with no financial experience was appointed head of Korea Growth Finance Corporation. Recently, parachute appointment controversies have also surfaced at the Korea Securities Depository and the Korea Housing Finance Corporation. A financial sector official remarked, "Regarding the parachute issue, many expected the Moon Jae-in administration to be different from previous governments because it emphasized fairness, but looking back over the past four years, there was little difference."

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