[Gwanga in] Kim Juhyun - Lee Bokhyun, the Subtle Harmony of the 'Two Hyun'

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Looking back, it has been rare for there to be no conflicts between the heads of the Financial Services Commission (FSC) and the Financial Supervisory Service (FSS). Originally, during the Financial Supervisory Commission era before the Lee Myung-bak administration, the chairman of the FSC concurrently served as the head of the FSS, so there was little conflict between the FSC and the FSS. The Lee Myung-bak administration created the FSC by merging the Financial Policy Bureau of the Ministry of Strategy and Finance (responsible for financial policy) and the Financial Supervisory Commission (responsible for financial supervision) through government department consolidation, and appointed a separate head for the FSS apart from the FSC chairman.

From that point on, there were several conflicts between the FSC chairman and the FSS head. Unlike the FSC, which had fewer personnel and relied on the FSS, the FSC strongly controlled and took the lead over the FSS, and communication between the two organizations was no longer as smooth as before. A representative example was during the Park Geun-hye administration with FSC Chairman Shin Je-yoon and FSS Head Choi Soo-hyun. At that time, they clashed over issues such as the heavy disciplinary action against the KB Financial Group chairman, inspections of asset management companies, and the easing of real estate loan regulations, revealing differences in stance on every matter.

During the Moon Jae-in administration, FSC Chairman Choi Jong-ku and FSS Head Yoon Seok-heon had a direct confrontation over the introduction of labor directors, the re-investigation of KIKO (Knock-In Knock-Out) contracts, and the accounting fraud at Samsung Biologics. A senior official of the financial authorities said, "The chairman and the head did not even want to see each other's faces. The conflict reached its peak, only falling short of physical altercations," describing the atmosphere at the time.

Kim Ju-hyun, Chairman of the Financial Services Commission (far right), is speaking at the Financial Holding Companies Chairmen Meeting held at the Press Center in Jung-gu, Seoul on the 31st of last month. The second from the right is Lee Bok-hyun, Governor of the Financial Supervisory Service. Photo by Yoon Dong-joo doso7@

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Compared to the past, the current government's 'dual leadership' system (FSC Chairman Kim Joo-hyun and FSS Head Lee Bok-hyun) is viewed differently by insiders. Thanks to the peculiar combination of two leaders with contrasting characters, there has been little friction.

Head Lee answers any questions from the media in his own words. While high-ranking public officials usually avoid answering sensitive issues or respond ambiguously, Head Lee delivers clear messages. For example, during last year's reshuffle of financial group chairmen, he openly pressured former Woori Financial Group Chairman Sohn Tae-seung to resign while expressing respect for former Shinhan Financial Group Chairman Cho Yong-byeong who stepped down. Recently, regarding short selling, he stated, "If financial market instability is resolved within a few months, we will consider lifting the ban on short selling within this year."

Kim Ju-hyun, Chairman of the Financial Services Commission (right), attended the meeting of financial holding company chairmen held at the Press Center in Jung-gu, Seoul on the 31st of last month, and is seen talking with Lee Bok-hyun, Governor of the Financial Supervisory Service (left), during the meeting. Photo by Yoon Dong-joo doso7@

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Since early this year, he has visited financial holding companies not only in Seoul but also in Busan and Daegu, securing 'gifts' of loan interest rate reductions wherever he went. Inside the FSS, he is evaluated as having the advantage of maximizing efficiency by utilizing his authority to the fullest in his position.

Chairman Kim is a cautious bureaucrat type. Rather than taking the lead, he is meticulous, rational, and quietly focuses on his work. Because of this, there have been many remarks that Chairman Kim has been overshadowed by Head Lee, who is a key figure in the current government. An official from the authorities said, "In terms of status, the FSC is undoubtedly superior, but since last year, its presence has diminished," adding, "When the FSS says, 'This matter has already been reported to the head,' the FSC had no choice but to comply."

Personally, the two are senior and junior alumni of Seoul National University's Department of Economics, and it is known that Head Lee frequently consults Chairman Kim on current issues. However, within the FSC, there is dissatisfaction that Head Lee comments on FSC's inherent tasks or appears to lead current issues on behalf of the FSS. Nevertheless, their true feelings are, "There is much to say, but we will not."

From the FSC's perspective, although it is regrettable, there is also a view that the peace born from the peculiar combination of the two leaders is much better for advancing financial policies than conflicts between the heads of financial authorities. A financial sector official said, "'Always-diligent' Chairman Kim will no longer cling to his position, but rumors about Head Lee running for the general election or becoming a minister persist," adding, "If Chairman Kim had tried to assert his presence as well, there would have been clashes like in the past, and during these difficult economic times, the media would have focused more on conflicts between the heads of financial authorities rather than on policies, causing side effects."

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