Financial Supervisory Service Chief Visited China Last Week... Met with Director of China Banking and Insurance Regulatory Commission

China's Financial Regulatory Authority Launches in March... Bilateral Meeting
Cooperation Needed from China on Illegal Funds and Overseas Abnormal Remittances

Lee Bok-hyun, Governor of the Financial Supervisory Service, is attending the meeting between the Financial Services Commission Chairman and the Financial Association Presidents held at the Press Center in Jung-gu, Seoul on the 22nd, delivering opening remarks. Photo by Yoon Dong-joo doso7@

Lee Bok-hyun, Governor of the Financial Supervisory Service (FSS), visited China last week and met with senior officials of the China Banking and Insurance Regulatory Commission. The meeting took place at a time when cooperation from China, often mentioned as a transit or destination point for illegal fund money and abnormal overseas remittances in the domestic financial sector, was necessary.

On the 31st of last month, Governor Lee visited Beijing, China, and met with Li Yunze (李云澤), Director General of the China Banking and Insurance Regulatory Commission, promising to strengthen Korea-China financial cooperation. This was the first visit by an FSS governor to China in six years since former Governor Jin Woong-seop met with heads of the China Banking Regulatory Commission and the Securities Regulatory Commission in July 2017.

The China Banking and Insurance Regulatory Commission is the "Chinese version of the FSS." It was launched in March by integrating the supervisory and consumer protection functions of the Banking and Insurance Regulatory Commission and the People's Bank of China, the central bank, as well as the investor protection functions of the Securities Regulatory Commission. Governor Lee and Director General Li Yunze exchanged views on economic and financial trends and financial supervisory issues in both Korea and China.

Last year, the FSS detected abnormal foreign currency remittance transactions amounting to $12.2 billion from 84 companies through a comprehensive inspection of financial firms. However, it faced difficulties in identifying the cases sent to China and other countries. In recent cases such as Lime, Optimus, and Discovery funds, cooperation from related countries including China is necessary to uncover illegal fund money overseas remittances.

On the 24th of last month, the FSS announced that it had re-examined the Lime incident, which caused a large-scale redemption crisis, and additionally detected preferential redemptions for influential figures and embezzlement amounting to thousands of billions of won. On the 1st, Governor Lee also met with Liao Lin (廖林), President of the Industrial and Commercial Bank of China, in Beijing.

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