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[Asia Economy Reporter Minwoo Lee] Controversy is growing over the appointment of the president of the Korea Deposit Insurance Corporation (KDIC), a quasi-governmental agency. Internal members are opposing the leading candidate, calling them a 'parachute' appointee, while procedural issues have also been raised.

According to industry sources on the 14th, KDIC recommended four candidates, including former Korea Securities Depository President Yoo Jae-hoon, to the Financial Services Commission (FSC) as candidates for the new president. The KDIC president is then appointed through procedures including the FSC chairman's recommendation and the president's appointment.

Concerns have been raised about problems in this process. The executive recommendation committee (ERC) for nominating the president candidates was not newly formed; instead, the ERC established on May 19 to appoint non-standing directors proceeded with recommending the president candidates.

According to KDIC internal regulations, the ERC must be newly formed each time executives are recommended. However, there is an exception clause allowing the ERC to be composed of the same members if multiple executive vacancies occur and the expected vacancy dates are concentrated within 'three months' from the earliest expected vacancy date.

The issue arose when former President Kim Tae-hyun suddenly announced his resignation at the end of August, creating room for different interpretations regarding the 'expected vacancy date.' KDIC management stated that the earliest expected vacancy date of the existing ERC was August 2, and since the president vacancy occurred within three months, by November, there was no procedural problem. On the other hand, the labor union argued that since there was no resignation plan for former President Kim at the time of the ERC formation, the expected vacancy date should be considered as the term expiration date in October 2024. Therefore, reusing the ERC is procedurally problematic.

The KDIC labor union has taken this stance because they strongly oppose the appointment of former President Yoo, who is considered the most likely candidate. Previously, at the end of last month, the KDIC labor union held a press conference titled 'Immediate Withdrawal of the Attempt to Appoint a Parachute President at KDIC.' This was the first time the KDIC labor union held an independent press conference since its formation about 20 years ago. At that time, the union pointed out that former President Yoo had carried out unfair retaliatory personnel actions and was ordered by the Supreme Court in 2019 to pay damages amounting to 500 million won for violating the Labor Standards Act and employment rules.

Political circles also appear to be signaling a halt to former President Yoo's appointment. Already, Democratic Party lawmakers Min Byung-duk and Yang Jeong-sook have inquired with the FSC about the status of the KDIC president recommendation and opinions on former President Yoo's damage compensation ruling and unfair personnel actions. Related issues are also expected to be addressed at the KDIC National Assembly audit scheduled for the 20th.

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