[Q&A] Senior Deputy Governor Sehun Lee of the Financial Supervisory Service: "National Report Meeting on Financial Consumer Protection to Be Held in the First Half of Next Year"

Back Briefing After Resolution Meeting on Strengthening Consumer Protection
"Year-End Organizational Restructuring... Reflecting Planning Team Discussions"

Sehun Lee, Senior Deputy Governor of the Financial Supervisory Service, announced that the results of the newly established Financial Consumer Protection Planning Team's operations will be reflected in the year-end organizational restructuring. The restructuring will focus on elevating the Financial Consumer Protection Bureau to the status of the Financial Consumer Protection Headquarters and establishing the Financial Consumer Protection Committee directly under the Governor, among other measures. Based on the activities of the planning team, a National Report Meeting on Financial Consumer Protection will be held in the first half of next year.

Sehun Lee, Senior Deputy Governor of the Financial Supervisory Service, is speaking at a press conference held immediately after the "All Employees Financial Consumer Protection Strengthening Resolution Meeting" at the Financial Supervisory Service headquarters in Yeouido, Yeongdeungpo-gu, Seoul on the 29th. Photo by Chae-seok Moon

Senior Deputy Governor Lee explained these plans for organizational restructuring and operations related to financial consumer protection immediately after the "All Employees Resolution Meeting" held at the headquarters in Yeouido, Yeongdeungpo-gu, Seoul on the 29th.

The following is a Q&A with Senior Deputy Governor Lee.

-You mentioned that the organizational reform plan will be finalized by December. When will the subsequent personnel appointments, including executive appointments, take place?

▲Today marks the starting point for reaffirming the commitment of all Financial Supervisory Service employees. The specific organizational restructuring plan must undergo feedback from employees and coordination between departments. Consultations with related agencies such as the Financial Services Commission are also necessary. I will provide further details as soon as possible. The specific direction may change significantly in the future. As personnel matters are decided by the appointing authority, it would be inappropriate for me to comment directly. I believe personnel appointments will proceed according to the judgment of the appointing authority and internal procedures.

-You said the Financial Consumer Protection Bureau will be elevated to the Financial Consumer Protection Headquarters. What will be the role of the head of the bureau?

▲Until now, the focus has largely been on post-incident remedies, providing relief to victims after incidents occurred. To enable consumer protection at every stage of financial services, it is important to have an organic relationship among each business sector department. The idea is that the Financial Consumer Protection Bureau, as the most senior department within the Financial Supervisory Service, should be able to oversee all work. The specific organizational structure will be determined after gathering opinions and consulting with related agencies, and there will be an opportunity to provide further guidance in the future.

-It seems the organizational restructuring is almost complete, but the issue of designation as a public institution remains. Do you have any information on this? What is the position of the Financial Supervisory Service?

▲I believe the designation as a public institution will be discussed according to the procedures stipulated by relevant laws and regulations in the future. Due to limited information, there is not much I can say directly. Regardless of whether the Financial Supervisory Service is designated as a public institution, there is a serious demand from the public and the times to strengthen the public nature and transparency of financial supervisory administration and financial consumer protection functions. We will make every effort to meet these needs. There is a certain conflict between the request to strengthen public nature and transparency related to public institution designation, and the need to maintain the independence of financial supervision. Therefore, I expect that future discussions on the procedures will aim for a reasonable balance between these aspects.

-You said a National Report Meeting on Financial Consumer Protection Innovation will be held next year. What is the target date? The Public Institution Management Committee is scheduled to meet at the end of January next year. Is it possible to hold the meeting before then?

▲The National Report Meeting at the level of the Financial Supervisory Service is different in nature from those held by the government and other organizations. It should be understood as an interim check and evaluation of the Financial Supervisory Service's efforts, with an opportunity to identify areas for further improvement. Since the meeting should be held when there are some visible achievements, it will be difficult to hold it very soon. We are aiming for the first half of next year. The specific timing will need to be reviewed further.

-Will external experts also participate in the Financial Consumer Protection Committee directly under the Governor?

▲It would be best to understand the Financial Consumer Protection Committee as an advisory body. Financial companies and the business community have associations that clearly represent their interests. For financial consumers, it is difficult to assume the existence of a representative organization. As an alternative, we plan to operate the committee. Experts in the field of consumer affairs will participate, and we are also working to create opportunities for general consumer panels and others who can directly voice their opinions to participate.

-How will the advisory content be reflected?

▲Recommendations from the advisory committee do not have legal binding force. However, many organizations, including the Financial Consumer Protection Committee, operate advisory bodies. Regardless of legal binding force, the importance of procedural legitimacy is being emphasized. Unless there is a special reason to decide otherwise, the recommendations are generally accepted. There are concerns about whether the advisory committee will be able to reach a consensus. Since multiple opinions may arise simultaneously, it can be challenging to address them all.

-You said you regret that financial consumers were treated as mere objects in the past. There has also been criticism that the Financial Supervisory Service's response to incidents such as the equity-linked securities (ELS) losses was insufficient. Do you have any intention to reverse past decisions?

▲That is a somewhat different issue. Reversing past decisions could create other problems in terms of administrative consistency. I am not considering extending the matter that far.

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