[1mm Financial Talk] Controversy Over "Must Know the Right People" Remark by Parachute Directors in Public Institutions

An executive at a financial public institution, who was embroiled in a parachute appointment controversy, has reportedly caused a stir with inappropriate remarks from the very first day of work. Criticism has been raised that he blatantly emphasized the ‘inner circle’ in front of employees, reflecting the prevailing culture of parachute appointments in the financial sector.

According to the financial sector on the 9th, A Executive Director of the Korea Credit Guarantee Fund made remarks to some employees on his first day last month, implying that "getting into the inner circle is important." He is also known to have said things like "you have to be good at lining up."

Executive Director A is a former Financial Services Commission (FSC) Financial Public Data Officer (Grade 4) and joined as the successor to Park Chang-gyu, the incumbent Executive Director of the Korea Credit Guarantee Fund. He was appointed on the 3rd of last month and started work on the 5th. His term is two years, until January 4, 2024.

When news broke that a former FSC official was appointed to the key position of Executive Director, controversy over ‘gwanpia’ (bureaucrat + mafia) erupted inside and outside the financial sector, including at the Korea Credit Guarantee Fund. Rumors had been rampant since the executive candidate recommendation committee process that a so-called ‘FSC section chief-level official’ had been pre-selected.

In response, the labor union staged a protest to block his entry to work. When the union blocked his entry twice at the main gate, he was unable to enter the office. On the third day, after expressing his determination to work, the union abruptly stopped the protest, allowing him to start work with difficulty. However, he caused controversy by making inappropriate remarks.

As employee protests continued, Executive Director A postponed his schedule and apologized to employees for his slip of the tongue. He also expressed regret in a letter addressed to the employees. It is known that there were no internal sanctions or disciplinary actions taken by the institution.

Nevertheless, the remarks have been pointed out as highly problematic. This is because the comments were made directly by an external institution official at a financial public institution where public interest is emphasized, and criticism has been strong that parachute appointments have been rampant in financial public institutions.

In a phone call with this reporter, Executive Director A said, "I have nothing to say about the situation at that time."

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