Financial Supervisory Service Organizational Restructuring: Establishment of Financial Market Stability Bureau and Expansion of Bank Inspection Bureau

Establishment of 'Financial Market Stability Bureau' Dedicated to Financial Markets and Risk Management
70% Change in Department Heads
Five Female Directors Appointed to Headquarters Departments

[Asia Economy Reporter Song Hwajeong] The Financial Supervisory Service (FSS) has reorganized its structure to stabilize the financial market and respond to financial crimes that harm the public. It established the Financial Market Stabilization Bureau and expanded the Bank Inspection Bureau from a two-division to a three-division system. Along with this, it conducted a regular personnel reshuffle, relocating 70% of department heads.

On the 14th, the FSS announced that it had carried out the organizational restructuring and department head appointments as described.

First, to stabilize the financial market, the FSS established the Financial Market Stabilization Bureau, a dedicated department for financial market and risk management, and strengthened overall functions by granting the Supervisory General Bureau authority over special assignments from the Governor and the power to establish a task force (TF) for rapid response to important issues.

To respond to financial crimes harming the public and protect financial consumers, the FSS established the Public Finance Bureau, responsible for preventing and cracking down on illegal lending and private loan damages, and reorganized the Illegal Finance Response Team into the Financial Fraud Response Team to adapt to voice phishing damages. Additionally, it added a Dispute Mediation Team within the Dispute Mediation Bureau to enhance the effectiveness of financial consumer protection through prompt handling of dispute complaints.

To address unfair trading related to illegal leading chat rooms and market disruption caused by private fund managers, the FSS expanded its organization and personnel by establishing a dedicated Stock Leading Chat Room Investigation Team within the Planning and Investigation Bureau and reinforcing the Special Inspection Team for Private Fund Managers. To proactively respond to accounting fraud and swiftly handle accounting supervision matters, the accounting supervision organization was reorganized into Accounting Supervision Bureau 1 and 2, and a Fund Rapid Review Office was established to resolve backlogs in fund and derivative product reviews and investigations, thereby promoting smooth capital circulation in the capital market.

The FSS also established the Supervisory Innovation Coordination Team for financial supervision innovation and the Financial Supervision Service Team to provide one-stop services for financial companies. To strengthen the international competitiveness of financial supervision and financial companies, it newly created the International Affairs Bureau’s Banking Operations Team and Financial Investment and Insurance Operations Team.

To prevent financial accidents such as embezzlement in the financial sector caused by poor internal controls, the FSS strengthened its preventive inspection functions. Accordingly, the Bank Inspection Bureau was expanded from two to three divisions, and the Foreign Exchange Inspection Teams increased from two to three. Bank Inspection Division 1 was assigned to commercial banks, Division 2 to regional and specialized banks, and Division 3 to foreign banks and risk inspections, considering the types of business and risk profiles of each bank.

Along with the organizational restructuring, the FSS conducted a department head reshuffle, changing 56 out of 79 department heads, accounting for 70%. To ensure financial system stability and timely response to financial issues, existing department heads were retained in major supervisory bureaus, while experts well-versed in their fields were appointed to departments with increasing workload demands such as public finance, digital, international, and legal affairs. Additionally, suitable candidates were assigned as heads of inspection departments in the capital market and banking sectors to enhance fairness and trust in the financial industry.

In this personnel reshuffle, the FSS appointed five female bureau chiefs to headquarters departments and assigned department heads from open recruitment to key departments such as inspection divisions.

An FSS official explained, "This personnel reshuffle focused on placing the right people in the right positions in response to current issues and organizational restructuring under the August ad hoc personnel policy centered on work capability and efficiency."

The FSS plans to complete regular personnel appointments early by conducting team leader and team member appointments by January.

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