[Exclusive] Will F4 Conflict Be Resolved... Financial Supervisory Service Chief to Attend Meeting This Week

Lee Bok-hyun, Governor of the Financial Supervisory Service, to Attend F4 Meeting This Thursday
Absence Last Week in Protest of Government's Rejection of Commercial Act Amendment
F4 to Discuss Financial Market Volatility Response Ahead of Impeachment Verdict

Lee Bok-hyun, Governor of the Financial Supervisory Service. Photo by Jo Yong-jun

Lee Bok-hyun, Governor of the Financial Supervisory Service, will return to the macroeconomic and financial issues meeting (F4 meeting). He suddenly missed last week's meeting, sparking controversy that conflicts related to the amendment of the Commercial Act had surfaced. This week's F4 meeting has been moved up from Friday the 4th to Thursday the 3rd, considering the U.S. reciprocal tariff announcement scheduled for early morning on the 3rd and the impeachment trial verdict set for the 4th. It is understood that the meeting will focus more on the direction of responding to macroeconomic and financial market volatility following the impeachment outcome rather than issues related to the Commercial Act.

According to the government and financial circles on the 1st, Governor Lee is expected to attend the F4 meeting held on the morning of the 3rd. The F4 meeting is a high-level consultative body established to review and respond to major economic issues and financial policies. Attendees include Choi Sang-mok, Deputy Prime Minister and Minister of Economy and Finance; Lee Chang-yong, Governor of the Bank of Korea; Kim Byung-hwan, Chairman of the Financial Services Commission; and Lee Bok-hyun, Governor of the Financial Supervisory Service.

Unless there are special circumstances, the F4 meeting, which these four have held every Friday morning, became controversial last week when Governor Lee suddenly did not attend. Last week, the amendment of the Commercial Act was on the agenda, and the Ministry of Justice also attended. When the Governor of the Financial Supervisory Service is absent, the Deputy Governor or Deputy Governor for Supervision usually attends, but unusually, no one from the Financial Supervisory Service attended.

This led to speculation that conflicts related to the amendment of the Commercial Act had surfaced. Governor Lee has consistently expressed the need for amending the Commercial Act to advance the capital market and build market trust. Regarding the veto exercised by Acting President and Prime Minister Han Duck-soo, he even stated, "I would oppose it even at the risk of my position."

On the other hand, the Ministry of Justice, Ministry of Economy and Finance, and Financial Services Commission, which are the relevant ministries, have expressed concerns about side effects and believe that amending the Capital Market Act is more appropriate than the Commercial Act amendment. On that day, Acting President and Prime Minister Han Duck-soo exercised his veto on the Commercial Act amendment bill, accepting the ruling party's request for reconsideration rights (veto) and the Ministry of Justice's proposal.

F4 meeting held at the Government Seoul Office on the 7th of last month. From the left, Lee Bok-hyun, Governor of the Financial Supervisory Service; Lee Chang-yong, Governor of the Bank of Korea; Choi Sang-mok, Deputy Prime Minister and Minister of Economy and Finance; Kim Byung-hwan, Chairman of the Financial Services Commission. Photo by Yonhap News.

Governor Lee is expected to attend this F4 meeting. There is no longer a need to discuss the amendment of the Commercial Act at the F4 meeting. Governor Lee still maintains close relationships with the F4 meeting members. Although there are differences in opinions regarding financial market issues, it is reported that there have been no frictions thanks to in-depth dialogue.

Above all, with President Yoon Seok-youl's impeachment verdict scheduled for the 4th, domestic financial market volatility could increase significantly. Since preemptive discussions among economic leaders on this matter are very important, the possibility of absence is slim. A Ministry of Economy and Finance official said, "This meeting will be held on the 3rd, the day before the impeachment verdict," and confirmed, "All four, including Deputy Prime Minister Choi, Governor Lee Chang-yong, Chairman Kim Byung-hwan, and Governor Lee Bok-hyun, will attend."

This F4 meeting is expected to mainly discuss the possible sharp fluctuations in the won-dollar exchange rate, changes in the stock market situation, and communication strategies with foreign investors following the Constitutional Court's impeachment verdict. A senior financial official said, "Since the veto on the Commercial Act amendment has already been exercised, it is unlikely that Commercial Act-related issues will arise at this F4 meeting," adding, "Discussions will mainly focus on measures to respond to macroeconomic volatility related to the impeachment outcome."

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