Lee Chanjin: "Improving Performance-Based Compensation System in Financial Sector Underway" [2025 National Audit]

National Policy Committee Audit of the Financial Supervisory Service

Lee Chanjin, Governor of the Financial Supervisory Service. Photo by Dongju Yoon

The Financial Supervisory Service is moving forward with plans to completely overhaul the Key Performance Indicator (KPI) system used for performance-based compensation in the financial sector.

On October 21, Lee Chanjin, Governor of the Financial Supervisory Service, stated at the National Policy Committee audit held at the National Assembly in Yeouido, Seoul, "We are currently pursuing a comprehensive improvement of the KPI system in the financial sector."

On this day, Kim Seungwon, a member of the Democratic Party of Korea, pointed out, "Although the Financial Supervisory Service has said it would completely reorganize itself to be more consumer-focused, that does not seem to be the case in reality. The review of securities registration statements by the Financial Supervisory Service is merely a formality, and when holding product sellers or asset managers accountable, the focus is only on whether they fulfilled their duty to explain. If problems arise afterward, responsibility is shifted to consumers."

In response, Governor Lee said, "I completely agree," and added, "We are using these issues as an opportunity to establish a system that filters out risk factors from the product design stage, and we will also comprehensively improve our procedures."

He further stated, "We are in the process of improving the KPI system that is prevalent throughout the financial sector. Since a short-term performance-oriented system encourages misselling, we are working to shift the evaluation framework to focus on long-term performance and to supplement the clawback system as well."

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