With Five Days Until Confirmation Hearing, Will Lee Okwon Clarify His Stance on the Future of the Financial Services Commission?

Lee Okwon, the nominee for the Financial Services Commission chairman, is expressing his feelings about the appointment as he arrives at the confirmation hearing preparation office set up at the Korea Deposit Insurance Corporation in Jongno-gu, Seoul on August 14, 2025. Photo by Kang Jinhyung

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With just five days remaining until the National Assembly's confirmation hearing for Lee Okwon, nominee for chairman of the Financial Services Commission, there is growing interest in how he will respond to questions regarding key issues such as the continued existence of the Financial Services Commission, the separation of the Financial Supervisory Service, and the direction of productive finance policies. Lee is also expected to actively address suspicions that he earned a large sum of money by holding multiple positions at several companies after retiring as Vice Minister of the Ministry of Economy and Finance.

According to political sources on August 28, the National Policy Committee of the National Assembly plans to hold a confirmation hearing for Lee on the morning of September 2. As the first nominee for Financial Services Commission chairman under the Lee Jaemyung administration, Lee is considered an economic expert, having served in key positions at the Ministry of Economy and Finance, as Economic Policy Secretary at the Presidential Office, and as First Vice Minister of the Ministry of Economy and Finance.

The financial sector generally believes that, given Lee's background as a traditional economic bureaucrat, he is unlikely to face major obstacles in passing the confirmation hearing. However, lawmakers are expected to question him on various pending issues, including the feasibility of the new administration's productive finance policies, household debt and real estate problems, and organizational restructuring of financial authorities. There will also likely be pointed questions regarding his personal affairs, such as the money he earned while working at several companies after retiring as vice minister, his real estate and stock investments, and the hiring of his eldest daughter.

The most closely watched issue is the organizational restructuring of financial authorities, including the potential dissolution of the Financial Services Commission and the separation of the Financial Supervisory Service. The National Policy Planning Committee of the Lee Jaemyung administration initially planned to transfer domestic financial policy functions from the Financial Services Commission to a new Ministry of Economy and Finance (tentative name) that would be separated from the Ministry of Economy and Finance. However, it is understood that the Presidential Office has not yet made a final decision on this plan. Similarly, the proposal to separate the consumer protection function from the Financial Supervisory Service and establish a Financial Consumer Protection Agency has not been finalized. The lack of a final decision on the reorganization of financial authorities has caused some confusion among field staff and working-level employees.

During the National Assembly hearing, Lee is expected to be questioned about his position on the organizational restructuring of financial authorities. There is considerable interest in his views as the top official in the financial sector. However, since the Financial Services Commission chairman does not have decision-making authority over organizational restructuring, it is likely that his answers will be cautious. After his nomination, Lee previously stated to reporters that, as a nominee, it was difficult for him to answer questions regarding the restructuring of financial authorities.

Questions are also expected regarding the productive finance policies being pursued by the new administration. The Lee Jaemyung administration has made it a national policy task to boost economic vitality by redirecting financial sector funds, currently concentrated in unproductive areas such as real estate loans, toward companies, innovative industries, and the stock market. Lee has previously stated, "I will swiftly implement the new administration's financial policy tasks, including a major shift toward productive finance, strengthening inclusive finance, and revitalizing the capital market."

Lee is also expected to actively address suspicions concerning his personal affairs after retiring as vice minister of the Ministry of Economy and Finance. Kang Minkook, a lawmaker from the People Power Party, raised suspicions the previous day that Lee earned more than 600 million won over about three years after retiring as vice minister by holding so-called "multiple concurrent positions" at several companies.

According to Kang's office, Lee worked at a total of six organizations, including the Korea Capital Market Institute, E-Broadcasting, LF, and CJ Logistics, from May 2022, after retiring as vice minister, until July of this year, earning a total employment income of 626.62 million won. Kang pointed out, "Given his octopus-like registration as an outside director and dozens of freelance activities, such as consulting and advisory roles, it is questionable whether he could properly fulfill his duties." In response, the National Assembly has selected Kim Sewan, president of the Korea Capital Market Institute, and Oh Kyusik, vice chairman and CEO of LF, among others, as witnesses.

Regarding these suspicions, Lee stated, "I faithfully performed my duties in each and every position I held," adding, "While serving as an outside director at LF and other companies, I diligently attended board meetings and received compensation at a customary level. I also actively fulfilled my consulting and advisory roles at organizations such as the Korea Capital Market Institute." He said he would provide detailed explanations on specific matters during the confirmation hearing.

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