Ahead of the Election of the Head of the Korea Financial Telecommunications and Clearings Institute... Bank of Korea Announces "Election Process to Begin Next Month"

The Bank of Korea: "Parachute Appointment Allegations Are Not True"

[Image source=Yonhap News]

[Asia Economy Reporter Seo So-jung] The Bank of Korea announced on the 16th that it plans to initiate the procedure to select the next Financial Settlement Institution President starting next month.

Governor Lee Ju-yeol's term expires on the 31st, and the current Financial Settlement Institution President Kim Hak-soo's term expires on the 6th of next month. Amid growing controversy that Governor Lee might appoint a Bank of Korea-affiliated person to the Financial Settlement Institution President position before his retirement, the Bank of Korea has moved to address the situation.

According to the current regulations of the President Candidate Recommendation Committee (Wonjwi), the committee consists of five members appointed by the general meeting of member banks, including one representative from the member banks and four external experts such as academics, research institute personnel, financial experts, and legal professionals.

The chairperson is elected among the committee members, and the committee independently sets the criteria, schedule, and procedures for the president selection, recruiting applicants, conducting document screening and interviews, selecting candidates, and recommending them to the general meeting of member banks.

As the term of current President Kim Hak-soo expires next month, the Bank of Korea, which serves as the chair of the general meeting of member banks, requested the Financial Settlement Institution on the 4th to hold a general meeting to appoint committee members according to the institution's articles of association.

The Bank of Korea explained, "To enhance the objectivity and transparency of the president selection process, we have proposed amendments to the committee's operating regulations and are currently consulting with the Financial Settlement Institution."

The proposed amendments under consultation include adding a member to the committee who can represent the opinions of the Financial Settlement Institution's staff. In exchange, the number of external experts will be reduced from four to three, the committee's minutes will be disclosed externally, and the public recruitment of president candidates will be codified.

The Bank of Korea plans to resolve the consultation on the amendments to the committee's operating regulations with the Financial Settlement Institution and then have the general meeting of member banks approve the amendments and appoint committee members.

A Bank of Korea official stated, "The general meeting of member banks may be held at the end of this month, but the public recruitment process, including applicant recruitment, document screening, and interviews conducted by the committee, is scheduled to take place after April. The rumors that Governor Lee plans a surprise parachute appointment before his term ends at the end of March or that the Deputy Governor has been pre-designated as the Financial Settlement Institution President are not true."

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