[Exclusive] Shinbo Standing Director Appointed from Financial Services Commission... Another Cronyism Case Striking the Moon Jae-in Administration

Confirmed Appointment of Financial Services Commission Director-Level Official... First Workday on January 5
Labor Union, 'Parachute Opposition'... Announces Work Blockade Protest

[Asia Economy Reporter Jin-ho Kim] A mid-level official from the Financial Services Commission has been appointed as the Standing Director of the Korea Credit Guarantee Fund, a financial public institution. With a government official taking the key position of Standing Director, new controversies are expected to arise at the Credit Guarantee Fund, which faced internal strife last year over the reappointment of auditor Shin Dae-sik. Concerns are also emerging in the financial sector that the so-called "parachute appointment" controversy will resurface toward the end of the Moon Jae-in administration, which had launched with calls for "fairness."

According to financial circles on the 30th, Cho Chung-haeng, former Financial Public Data Officer (Grade 4) at the Financial Services Commission, has been confirmed as the successor to Park Chang-gyu, the current Standing Director of the Credit Guarantee Fund. Cho’s appointment is expected to take effect as early as January 3 next year. His first day at work will be January 5, the day after Park steps down on January 4.

Born in 1963, Cho entered public service in 1991 through the Grade 7 open competitive exam. He has served in the Ministry of Finance and Economy (now Ministry of Economy and Finance) in the Financial Cooperation Division, Financial Policy Division, and at the Financial Services Commission in the Banking Division and the Microfinance Division. Most recently, he served as the Financial Public Data Officer at the Financial Services Commission before retiring from public service.

As news of Cho’s appointment became known, signs of renewed controversy over parachute appointments of bureaucrats?so-called "Gwanpia" (a portmanteau of "government official" and "mafia")?have surfaced inside and outside the financial sector, including at the Credit Guarantee Fund.

The union’s main concern is the legitimacy of the appointment process. Since the end of last month, the Credit Guarantee Fund has held several Executive Candidate Recommendation Committee meetings to select the Standing Director. However, the union claims that since rumors of a mid-level Financial Services Commission official’s appointment were already widespread, the committee meetings were merely for show.

Criticism has also been raised that the Ministry of Economy and Finance and the Financial Services Commission used their affiliated institutions to resolve their personnel backlogs. The Standing Director of the Credit Guarantee Fund typically serves a basic term of two years, with one renewal (one year), usually totaling three years. The union points out that Park’s unusual departure after only two years without renewal may be a move to secure the position for the end of the administration. Park is a former Ministry of Economy and Finance official.

An insider familiar with internal affairs criticized, "Is it justifiable for someone to come as one of only six executives in an organization of over 2,800 employees just because they were a public official?" and added, "It seems the Ministry of Economy and Finance and the Financial Services Commission are abusing their affiliated institutions to solve their personnel bottlenecks."

The union strongly opposes Cho’s appointment, calling it a typical showy personnel move that ignores the "fairness" emphasized by President Moon Jae-in. A union official said, "For external appointees, it is important whether they can play a role in government and external relations, but there are doubts whether a mid-level official will help with communication."

Meanwhile, the union plans to stage a work stoppage protest on January 5 next year, Cho’s first day at work.

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