[Inside Chodong] The Reason for the Financial Supervisory Service Chief's Existence

"The former deputy head is moving to the opposition party's innovation body, and rumors about the current head running in next year's general election are rampant. What kind of political organization is the Financial Supervisory Service (FSS)?"

The complaints from a former executive that the FSS is becoming politicized do not sound trivial. Recently, in the capital market, there have been specific rumors such as "'Bok Sajang' (Director Lee Bok-hyun's nickname) seems likely to run in Dongjak District." In Yeouido's political circles, there is a steady speculation that Director Lee, a former prosecutor close to President Yoon Seok-yeol, will run under the "general election mobilization order."

The Financial Supervisory Service is an agency under the Financial Services Commission established to ensure the soundness of financial companies, establish fair market order, and protect financial consumers. As an institution responsible for supervising financial markets, strict neutrality is essential. If a leader with political ambitions or who places greater importance on their post-FSS career passes through, the institution's raison d'?tre can be compromised. The resulting damage is borne by financial consumers.

Recently, mocking voices have been heard here and there regarding the FSS's supervisory actions aimed at correcting market order. Even the diligent supervisory work to eradicate repeated unfair and illegal acts in the capital market is viewed through a biased lens as Director Lee's "political showmanship." After the Soci?t? G?n?rale (SG) Securities-induced stock price crash, the FSS increased investigative personnel and established a special investigation team. Regardless of the scope of work, it decided to respond with full force to any major unfair incidents causing investor damage by the end of this year. However, companies and institutions under supervision in the market are lying low, thinking "this too shall pass."

When a leader tries to become selfish, members of the organization instinctively sense it. Although the leader denies it, those around them realize it before the person themselves. Those who achieve their goals can leave, but organizations whose fundamental raison d'?tre and operational philosophy are compromised bear the burden of those who remain. The perspective of those inside and outside the organization watching Director Lee is that he is someone living for the "later" rather than the "now."

Of course, Director Lee Bok-hyun has repeatedly dismissed the rumors of running. In a private executive meeting last March, he said, "I will stick to the FSS like a leech and work hard until the end." Also, in a meeting with reporters that same month, he mentioned, "Efforts by supervisory authorities to stabilize the market or support financial consumers are unlikely to bear fruit within one or two months," adding, "At least until the end of this year or the first half of next year, it seems uncertain whether people who share the same will can gather and work together." At a recent first-anniversary briefing, he said, "Currently, several policies are being managed mainly by four institutions: the Financial Services Commission, the Bank of Korea, the Ministry of Economy and Finance, and the FSS. Considering the human trust among the heads of these institutions and the still challenging financial market situation, it is difficult for any one of them to easily raise their hand and step forward." Therefore, his "running rumors" may be mere speculation and unfounded fears. However, the moment the market places weight on the "possibility," speculation and fears wield an invisible power.

As Director Lee himself said, the financial market situation is not favorable. This is a time when a leader with deep concern for maintaining financial order and developing the financial industry is more urgently needed than ever. From the moment he was appointed with the title of "youngest FSS director," Lee Bok-hyun is not the "youngest member of the Yoon line" but a sentinel at the forefront of the financial market. Even if he declares he will not run, what he must protect is the fair order of the financial market and the healthy flow of capital.

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