[Is Saemaeul Geumgo Okay?] ③ Discussion on 'Financial Authorities' Supervision' Law Remains at a Standstill

Discussed at the Public Administration Committee Subcommittee but No Progress
Ministry of the Interior and Safety and Financial Services Commission Also Passive

As concerns over soundness issues and blind spots in supervision continue, a bill to transfer the supervisory authority of Saemaeul Geumgo from the Ministry of the Interior and Safety to the Financial Services Commission has been proposed, but discussions remain at a standstill.

According to the National Assembly's Administrative and Security Committee on the 13th, discussions were held on the amendment to the Saemaeul Geumgo Act, which was primarily proposed by Kang Byung-won, a member of the Democratic Party of Korea, last July, during the bill subcommittee on the 18th of last month, but no significant consensus was reached. The amendment aims to clearly stipulate that the Financial Services Commission directly supervises Saemaeul Geumgo's credit and mutual aid businesses and can issue necessary supervisory orders, effectively transferring supervisory authority over these businesses from the Ministry of the Interior and Safety to the Financial Services Commission.

Under Article 74 of the current Saemaeul Geumgo Act, the Minister of the Interior and Safety supervises Saemaeul Geumgo's credit and mutual aid businesses in 'consultation' with the Financial Services Commission. Unlike other mutual financial institutions such as Nonghyup, Shinhan Credit Cooperative, and Suhyup, which are directly supervised by financial authorities, Saemaeul Geumgo has faced ongoing issues of supervisory inadequacy because the Financial Supervisory Service does not have direct inspection authority unless requested by the Ministry of the Interior and Safety.

Opinions among ruling and opposition party members diverged in the bill subcommittee. Jo Eun-hee, a member of the People Power Party, said, "There is no need to rush too quickly when neither the sender nor the receiver is prepared." Kang, who proposed the bill, stated, "It is hard to accept how convincing it is for the Ministry of the Interior and Safety to continue managing the assets of 25 million citizens worth 300 trillion won," adding, "Although Shinhan Credit Cooperative is also a regional financial institution, the Financial Services Commission manages and supervises its credit business, and I believe that having the Financial Services Commission, which has expertise, supervise Saemaeul Geumgo would reassure the public more."

The Administrative and Security Committee subcommittee plans to continue reviewing the amendment. Considering the schedule of the October national audit, it is likely that serious discussions will begin in November. However, the path to passing the bill remains long. An official from the committee said, "Since many complaints have been received from Saemaeul Geumgo in the constituencies, coordination of differing opinions among lawmakers is necessary," describing the atmosphere.

Moreover, both the Ministry of the Interior and Safety and the Financial Services Commission have taken somewhat negative stances regarding the transfer of supervisory authority. Ko Ki-dong, Vice Minister of the Ministry of the Interior and Safety, said, "We are establishing a Management Innovation Committee at the Saemaeul Geumgo Central Association to prepare management innovation plans," adding, "I think it would be better to have sufficient discussions with the Financial Services Commission after the innovation plans are prepared before discussing the transfer." Kim Ju-hyun, Chairman of the Financial Services Commission, also stated at the national audit on the 11th, "The issue of transferring supervisory authority is currently being reported on by the Innovation Committee regarding supervisory reinforcement and innovation plans, and we will discuss it after reviewing the results."

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