Ruling Party Proposes FSS Split as Party Policy... Labor Union Remains Firmly Opposed to Dispute Mediation Committee Transfer

Supervisory and Executive Authority Reduction Becomes Reality
Labor and Management Remain at Odds...
Collective Action to Continue for Now
National Policy Committee Chair Promises "Opportunity to Speak" to Labor Union

The restructuring of the Financial Supervisory Service, which includes reducing its supervisory and inspection authority as well as downsizing its executive organization, has become a reality. In response, the Financial Supervisory Service labor union and employees plan to continue collective action, including protests in front of the National Assembly, until the plenary session scheduled for September 25, which is expected to have significant repercussions.

About 700 employees, including Seop Jeong, Acting Chairman of the Financial Supervisory Service Labor Union (far right), are protesting against the restructuring of the financial supervision system on the first floor of the Financial Supervisory Service headquarters in Yeouido, Yeongdeungpo-gu, Seoul, on the morning of the 16th. The protest lasted for 20 minutes starting at 8:21 a.m. Photo by Chae-seok Moon

According to the financial sector on September 16, Kim Byungki, Floor Leader of the Democratic Party of Korea, proposed ten partial amendment bills for industry-specific laws, as well as a bill to establish the Financial Supervisory Commission, as the party’s official stance the previous day. The amendments include increasing the number of Financial Supervisory Commission members from nine to ten, while reducing the number of deputy governors at the Financial Supervisory Service from four to three and assistant deputy governors from nine to eight, resulting in a total reduction of two executives. On the other hand, the Financial Consumer Protection Agency will have one governor, one deputy governor, and three assistant deputy governors.

The reduction of supervisory and inspection authority is also underway. Contrary to the claims of the emergency committee of the Financial Supervisory Service, the political sector has decided to transfer the Dispute Mediation Committee to the Financial Consumer Protection Agency. However, for the Sanctions Review Committee, most functions-except for those involving severe disciplinary actions against executives-will remain with the Financial Supervisory Service, and it was reported that Governor Lee Chanjin played a role in this process. The Dispute Mediation Committee is an organization within the Financial Supervisory Service’s Financial Consumer Protection Bureau that mediates disputes between consumers and financial institutions. The Sanctions Review Committee determines the level of sanctions against financial companies and their executives and refers them to the Financial Services Commission.

On this day, more than 700 members of the emergency committee, union members, and employees of the Financial Supervisory Service continued their protest against the restructuring of the financial supervisory system (the “black clothes protest”) for the sixth consecutive day. They opposed the transfer of the Dispute Mediation Committee to the Financial Consumer Protection Agency, arguing that this is effectively equivalent to the separation of the Financial Consumer Protection Bureau. They stated that if the Dispute Mediation Committee is not retained within the Financial Supervisory Service as it is now, they will continue their protests. Seop Jeong, Acting Chairman of the Financial Supervisory Service Labor Union (Senior Vice Chairman), stated just before the protest, “The employees’ demand is to withdraw the separation of the Financial Consumer Protection Agency, and only by preventing this separation can both the Sanctions Review Committee and the Dispute Mediation Committee remain within the Financial Supervisory Service. We will continue to protest against the transfer of the Dispute Mediation Committee to the Financial Consumer Protection Agency.”

The emergency committee of the Financial Supervisory Service reported that the previous day, Yoon Hanhong, Chairman of the National Policy Committee, stated that the labor union would be given opportunities to express its opinions on the organizational restructuring during upcoming National Assembly events such as the national audit and government questioning sessions.

Yoon Taewan, a member of the emergency committee, said, “Chairman Yoon said he would provide opportunities for the labor union to express its opinions on the restructuring issue during future National Assembly events such as the national audit and government questioning sessions. The office of Assemblywoman Han Jeongae, Chairperson of the Democratic Party Policy Committee, also requested that we communicate any finalized union positions.” He added, “Some employees became unsettled after the bill was posted on the National Assembly’s legislative information system the previous afternoon, and we were asked whether the goals and values of the emergency committee had changed. However, the emergency committee maintains clear goals and values: withdrawing the separation of the Financial Consumer Protection Agency and withdrawing the designation as a public institution.”

Lee Chanjin, Governor of the Financial Supervisory Service, is arriving at the main office on the first floor at 8:11 a.m. on the 16th. Photo by Moon Chaeseok

The emergency committee of the Financial Supervisory Service stated that even if the ruling party designates the government reorganization bill as a fast-track item, they intend to delay the process as much as possible. If the People Power Party opposes and the Democratic Party designates the bill as fast-track, it can be brought to the plenary session after passing through the Legislation and Judiciary Committee six months later, even without the consent of the People Power Party. It typically takes 180 to 330 days for a fast-tracked bill to be referred to the plenary session after review by the relevant standing committee (the National Policy Committee). In this case, the restructuring and related work could take place not on January 2 of next year as scheduled, but in the second quarter or even the second half of next year.

The emergency committee plans to hold a forum with the office of Park Sooyoung, a member of the People Power Party, on the morning of the following day to discuss opposition to the government organization law amendment. At around noon on the 18th, they are scheduled to hold a rally in front of the National Assembly. Some employees are also holding solo protests near the Presidential Office and the National Assembly.

Meanwhile, on this day, Governor Lee arrived at the main office at 8:11 a.m. and did not respond to reporters’ questions regarding the ruling party’s official proposal of the restructuring bill the previous day, leaving the area without comment.

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