[1mm Finance Talk] Financial Supervisory Service Union to Elect New Leader After 7 Months... Accelerating Response to Key Issues

Transition to Acting Chairman System Following Vote of No Confidence in Former Chairman
Next Chairman Faces Task of Abolishing Employment Restriction Regulations
Must Also Overhaul External Cooperation on Public Institution Redesignation and Organizational Restructuring

The labor union of the Financial Supervisory Service has concluded its seven-month period under the acting chairman system and has officially begun the procedures for the upcoming chairman election. The newly elected chairman will be tasked with not only fulfilling employees' long-standing demand to abolish the employment restriction regulations, but also undertaking the significant responsibility of reorganizing external cooperation frameworks—most notably, addressing the redesignation of the organization as a public institution and the separation of the Financial Consumer Protection Bureau.

Financial Supervisory Service Headquarters, Yeongdeungpo-gu, Seoul. Financial Supervisory Service

As of April 18, according to the supervisory authorities, the Financial Supervisory Service labor union announced the next chairman election on April 1, with vote counting scheduled for April 22. The election has drawn considerable attention inside and outside the organization, as it is shaping up to be a generational contest.

For candidate number 1, Kim Sangwoo, Senior Investigator of the Consumer Communication Bureau (born in 1987), and Yoo Harim, Senior Investigator of the Asset Management Supervision Bureau (born in 1992), are running for chairman and vice chairman, respectively. Facing them as candidate number 2 are Park Youngseop, Financial Education Advisor of the Financial Education Bureau (born in 1968), for chairman, and Park Sunghan, Chief Examiner of the Consumer Protection Supervision Bureau (born in 1970), for vice chairman. The term of office for the elected candidates will run from May 1, 2026, to April 30, 2028.

The reason this election has drawn so much attention within and outside the Financial Supervisory Service is that it is the first election held after resolving internal strife triggered by the previous chairman's vote of no confidence last year. Previously, in September 2025, the labor union’s delegates' assembly passed a motion to dismiss the former chairman, after which Senior Vice Chairman Jeong Boseop was appointed as acting chairman to lead the organization.

During the past seven months under the acting chairman system, the Financial Supervisory Service labor union has been credited with contributing, to some extent, to major issues such as responding to political efforts to separate the Financial Consumer Protection Bureau and block the establishment of the Financial Consumer Protection Agency, as well as postponing the redesignation of the organization as a public institution by the Ministry of Economy and Finance's Public Institution Management Committee. However, as the organization was shaken by external pressures during this period, there is a growing call for the swift election of a formal chairman to rebuild a robust framework for external cooperation together with management.

The highest priority for the next union leadership is undoubtedly the abolition of the employment restriction regulations. Currently, employees ranked grade 4 or higher at the Financial Supervisory Service face strict limitations on re-employment in private companies for three years after retirement. In particular, grade 1 employees are subject to a comprehensive review of all organizational work performed in the five years prior to retirement, and grade 4 or higher staff can only seek employment after passing a review if their new job is deemed unrelated to their previous work. These regulations have become a significant obstacle for talented individuals wishing to transition from the Financial Supervisory Service to the private financial sector and are cited internally as a key reason for the outflow of talent, leading to strong dissatisfaction among staff.

Other challenges facing the next leadership include responding to the potential resumption of organizational restructuring depending on political circumstances and government policy direction, as well as effectively defending against renewed controversy over the postponement of public institution redesignation.

A Financial Supervisory Service official stated, "The employment restriction regulations and the issue of public institution redesignation are highly sensitive matters directly linked to staff morale. The next leadership must not only enhance the rights and interests of union members, but also fulfill their duty to ensure organizational stability for the advancement of Korea's financial sector."

Another official said, "While external factors such as the salary system are largely influenced by the Financial Services Commission and other bodies, staff members earnestly hope that the union and management will work together to find a practical breakthrough, at least regarding the employment restriction regulations. Once the new leadership takes office, we expect that the response to external cooperation will be much more stable compared to the acting chairman system."

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