Controversy Over 'Albakgi,' Lee Chang-yong Admits "Feeling Burdened"... Lone Star Responsibility Debate Emerges

Lee Chang-yong, nominee for Governor of the Bank of Korea, appeared at the confirmation hearing held at the National Assembly on the 19th and responded to questions from lawmakers. Photo by Yoon Dong-joo doso7@

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[Asia Economy Reporter Seo So-jung] Lee Chang-yong, the nominee for Governor of the Bank of Korea, admitted that he indeed felt burdened by the 'preemptive appointment controversy.' Responsibility was also raised regarding his failure to promptly determine whether the Lone Star Fund qualified as 'industrial capital' (non-financial major shareholder) during his tenure as Vice Chairman of the Financial Services Commission.

On the 19th, at the National Assembly's Planning and Finance Committee confirmation hearing, Lee expressed this position in response to a remark by Seo Il-jun, a member of the People Power Party, who said, "There is criticism that this is the last preemptive appointment of this administration."

Rep. Seo questioned, "The Bank of Korea Governor's term is four years, so it is logical to leave the appointment authority to the newly inaugurated President Yoon Seok-yeol," adding, "Even if the offer came, shouldn't the nominee himself have declined?"

Lee replied, "When the offer came, I personally felt a great burden about whether I could fulfill my duties," and added, "If the committee members judge that I have sufficient expertise, I will abide by their decision."

Yong Hye-in, a member of the Basic Income Party, raised concerns about Lee's failure to properly determine whether the Lone Star Fund qualified as 'industrial capital' (non-financial major shareholder) during his time as Vice Chairman of the Financial Services Commission, which led to the lack of an order to sell shares of Korea Exchange Bank.

Rep. Yong stated, "At that time, the Financial Services Commission received documents to determine Lone Star's status as a non-financial major shareholder, and the documents submitted by Lone Star itself included the fact that it was a non-financial major shareholder, yet the review was deferred," adding, "It can only be interpreted that the Financial Services Commission disregarded the documents submitted by Lone Star."

Lee explained, "The materials sent by Lone Star differed from the original data, and the verification process continued. Even after verification, there was discussion on whether to issue an order to sell shares, so time passed."

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