[2023 National Audit] Many Former Financial Supervisory Service Officials Join Major Law Firms... Lee Bok-hyun "Disciplinary Action if Meeting Outside Office"

[Image source=Yonhap News]

It has been revealed that retirees from financial authorities such as the Financial Services Commission and the Financial Supervisory Service have recently been moving en masse to large law firms. Related to this, Lee Bok-hyun, Governor of the Financial Supervisory Service, stated that if former employees of the Financial Supervisory Service meet privately with representatives of large law firms outside the office, they will respond strongly with disciplinary actions.

On the morning of the 17th, at the National Assembly’s Financial Services Committee audit held at the Financial Supervisory Service in Yeouido, Seoul, Choi Seung-jae, a member of the People Power Party, pointed out, "The place where most retirees from the Financial Supervisory Service get employed is large law firms such as Kim & Chang," adding, "This year, retirees have been employed by banks, financial holding companies, insurance companies, and card companies, but can proper supervisory authority be exercised in such places?"

In response, Governor Lee said, "Supervision and inspection of places where former Financial Supervisory Service employees are employed will be conducted strictly," emphasizing, "We will completely block private contact with large law firms and create regulations to prevent meetings outside official offices, and disciplinary measures will be taken if violated."

According to the "Employment Review Status by the Public Officials Ethics Committee for Financial Supervisory Service Retirees" data submitted in advance to the National Assembly’s Financial Services Committee before the audit on the same day, excluding restrictions, holds, and disapprovals, 106 people were approved or confirmed over the past three years from 2021 to August 2023.

The places where Financial Supervisory Service retirees most frequently moved to were large law firms such as Kim & Chang, Kwangjang, and Yulchon, with 31 people reemployed. In particular, during this period, 10 people were reemployed at Kim & Chang, making it the single company where Financial Supervisory Service employees most frequently went. Next were Kwangjang with 8 people, Yulchon (5 people), Sejong (4 people), HwaWoo (2 people), Taepyungyang (1 person), and Minju (1 person). In the case of the Financial Services Commission, a total of 15 people were approved during the same period, of which about 13%, or 2 people, were reemployed at large law firms such as Taepyungyang and HwaWoo.

Especially, the trend of Financial Supervisory Service employees moving to law firms has increased noticeably recently. As financial regulatory fields have become one of the revenue sources for law firms, including large-scale redemption suspensions of private equity funds such as Lime and Optimus, the demand for Financial Supervisory Service employees appears to have increased.

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