Korea Exchange Union Files Public Audit Petition Over Appointment of Former FSS Official as Derivatives Market Division Head

Full Investigation Demanded Over Alleged Personnel Intervention

Union: "Head of Derivatives Division Has Zero Experience"

CCEJ: "Part of the Ongoing Gwanpiah Problem"

On the 21st, the Korea Exchange Labor Union, together with the Citizens' Coalition for Economic Justice (CCEJ) and Busan CCEJ, submitted a petition for a public audit to the Board of Audit and Inspection regarding the appointment process for the Head of the Derivatives Market Division at the Korea Exchange.

On the 21st, the Korea Exchange Labor Union, Citizens' Coalition for Economic Justice (CCEJ), and Busan CCEJ held a press conference in front of the Audit and Inspection Board in Jongno-gu. Photo by Yonhap News

On the same day, they held a press conference in front of the Board of Audit and Inspection in Jongno-gu, demanding a thorough investigation into allegations of personnel intervention during the appointment of a former high-ranking official from the Financial Supervisory Service (FSS) as an executive of the Korea Exchange. They also called for an investigation into why the Ministry of Personnel Management had not designated the Korea Exchange as an institution subject to post-retirement employment review for public officials, and whether this aligns with the intent of the Public Service Ethics Act.

Jung Byeong-ro, Deputy Chairman of the Korea Exchange Labor Union, criticized, "An FSS executive who was overseeing the exchange until just yesterday is now sitting on the board," adding, "This absurd role-switching has been repeating for as long as nine years."

Deputy Chairman Jung further stated, "There was a time when the KOSPI 200 futures and options market had the highest trading volume in the world, and the Korean derivatives market drew global attention," adding, "Yet the newly appointed Head of the Derivatives Market Division, parachuted into the position, has zero experience in derivatives."

He continued, "The Korea Exchange is originally a private stock company funded by securities firms, but despite being categorized as a public institution for the sake of public interest, when high-ranking FSS officials move to the exchange, employment review procedures do not even apply," emphasizing, "This loophole in the public service ethics system has become a runway for parachute appointments."

CCEJ pointed out that it has been investigating the issue of 'Gwanpiah'—the so-called 'bureaucratic mafia' referring to public officials re-employed after retirement—and demanding institutional reforms, and that the appointment controversy for the Head of the Derivatives Market Division is part of this ongoing problem. Bang Hyo-chang, CCEJ Policy Committee Member, said, "From July 2022 to July last year, 134 out of 149 employment reviews for FSS officials resulted in approval or clearance," highlighting, "This means that post-retirement employment reviews for those from financial supervisory agencies are virtually always approved."

Previously, on the 13th, the board of directors at the Korea Exchange resolved to appoint Han Gu, former Deputy Governor of the Financial Supervisory Service, as Head of the Derivatives Market Division.

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