Forecast Union "Withdraw Attempt to Appoint Parachute President"

Yoo Jae-hoon Likely to Become Head of Korea Securities Depository... Strong Opposition from Labor Union

Members of the Deposit Insurance Corporation Branch of the National Office and Financial Services Labor Union are holding a press conference on the 27th in front of the Government Seoul Office Building, urging the immediate withdrawal of the attempted appointment of a parachute president at the Deposit Insurance Corporation.

[Asia Economy Reporter Minwoo Lee] Members of the Deposit Insurance Corporation labor union have opposed the appointment process of the new president. They claim that Yoo Jae-hoon, the current president of the Korea Securities Depository and a leading candidate for the successor, is a 'parachute' appointee with disqualifying factors.

The Deposit Insurance Corporation branch of the National Office and Financial Services Labor Union held a press conference on the 27th in front of the Government Seoul Office, demanding the immediate withdrawal of the attempt to appoint a parachute president at the Deposit Insurance Corporation.

Branch chief Im Sam-seop stated, "The Deposit Insurance Corporation is a key pillar of the national financial safety net protecting depositors and a guardian of financial stability that prevents the insolvency of financial companies in advance," adding, "High expertise, experience, morality, and a commitment to ethical management are natural qualifications, but Yoo Jae-hoon, the former president of the Korea Securities Depository and a leading candidate for the new president, has many disqualifying factors."

He continued, "During Yoo Jae-hoon's tenure as president of the Korea Securities Depository, there was an incident where dozens of workers were forcibly removed from their positions and demoted through unfair and retaliatory personnel actions. The Korea Securities Depository was subsequently ordered by the Supreme Court to pay damages amounting to 500 million won for violating the Labor Standards Act and employment regulations," and criticized, "Despite the National Assembly's 2020 audit pointing out that the Korea Securities Depository should claim compensation rights against Yoo Jae-hoon related to the damage ruling, he applied for the Deposit Insurance Corporation president position without any compensation."

Additionally, they pointed out that Yoo Jae-hoon took excessive overseas business trips during his tenure and caused a management vacuum by applying for and being appointed as the head of the Audit Department at the Asian Infrastructure Investment Bank (AIIB) before his term ended.

For these reasons, they demanded that the Ministry of Economy and Finance halt the personnel appointment process. The president of the Deposit Insurance Corporation is appointed by the president of the country upon recommendation by the Financial Services Commission after the Deposit Insurance Corporation nominates candidates. They also urged Yoo to withdraw his candidacy for the president position.

The union stated, "The Deposit Insurance Corporation is about to begin the interview and recommendation process for the president candidate, followed by appointments of auditors and executive directors," and warned, "If the Ministry of Economy and Finance and the Financial Services Commission proceed with parachute appointments and revolving-door personnel practices involving unqualified candidates, we will mobilize all our capabilities and launch a legitimate struggle."

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