Departing Jeong Eun-bo, Financial Supervisory Service Chief: "Supervisory Administration Must Be Carried Out According to Law and Principles"

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[Asia Economy Reporter Song Hwajeong] Jeong Eun-bo, Governor of the Financial Supervisory Service (FSS), emphasized supervision based on laws and principles instead of excessive discretionary supervision.

In his farewell address on the afternoon of the 7th, Governor Jeong stated, "Supervisory administration must be carried out according to laws and principles for the financial market and industry to operate based on trust," adding, "Predictability in supervisory policies must be a prerequisite as the financial industry moves forward through innovation."

Governor Jeong urged, "I hope that supervision based on laws and principles, rather than excessive discretionary supervision, will take root at the FSS, allowing it to become a more trusted supervisory institution."

Earlier this year, Governor Jeong emphasized that the FSS would enhance the predictability of inspections by restructuring the inspection system into regular and ad hoc inspections.

He highlighted the importance of proactive supervision amid concerns over a perfect storm (a crisis hitting all at once). Governor Jeong said, "There is concern that the perfect storm, which I have repeatedly warned about since taking office, may be materializing. At times like this, proactive supervision is crucial," adding, "We must guide financial companies to prevent risk factors by utilizing communication cooperation officers and internal audit request systems."

He also stated, "Due to changes in the financial environment such as complex and diverse financial products and digitalization, it is difficult to fully protect financial consumers through only ex-post sanctions," urging, "Please continue efforts to prevent consumer harm through supervision from the design and development stages of financial products and by refining integrated monitoring of financial products."

Finally, Governor Jeong emphasized the need to establish financial supervisory policies that align with communication and social and economic structural changes. He said, "The English name of the Financial Supervisory Service ending with 'Service' implies that the essence of supervision is not unilateral 'instruction' but two-way 'communication,'" and added, "Please always engage with the market and provide appropriate guidance and support."

He added, "By establishing a general regulatory framework for financial intermediation, we can ensure fair competition between financial companies and big tech, foster the trust industry, and strengthen comprehensive asset management functions and support for innovative businesses," concluding, "I hope that through policy efforts, the FSS can contribute to creating new added value and jobs in the financial sector."

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