Financial Services Commission Faces Ongoing Unrest Over Restructuring... Section Chiefs Request Individual Meetings with Chairman

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As discussions on the amendment to the Government Organization Act and the establishment of the Financial Supervisory Commission (FSC) failed to progress in the National Assembly, it has been reported that section chiefs at the Financial Services Commission are considering requesting individual meetings with Chairman Lee Eogwon regarding the organizational restructuring. As the restructuring of the financial authorities drags on, internal unrest appears to be growing.

According to financial authorities on September 25, discontent has been continuously surfacing on the Financial Services Commission's internal anonymous bulletin board, with section chiefs requesting individual meetings with the chairman regarding the restructuring. It is known that many section chiefs agree on the need for such meetings with the chairman.

The reason section chiefs are preparing to request meetings with the chairman is that there is a consensus that concerns over the restructuring are quite serious, regardless of seniority. An official at the Financial Services Commission stated, "There are worries that if personnel exchanges between the Ministry of Economy and Finance and the Financial Services Commission are carried out for organizational harmony, financial expertise may be lost."

The Financial Services Commission, like the Ministry of Economy and Finance, is a central government agency staffed by successful candidates of the administrative examination’s finance and economics track. While working in Seoul is an advantage, most section chiefs chose the Financial Services Commission considering their expertise in financial policy. An official explained, "The Economic Policy Bureau at the Ministry of Economy and Finance deals with macroeconomics, and the Policy Coordination Bureau coordinates between ministries. The tax division is similar to finance, but it is the Financial Services Commission that creates direct policies for the real economy, which is why many section chiefs choose to work here."

In addition to anxiety over the restructuring, fatigue also seems to be a factor. The fact that the new administration is pushing ahead with its national policy agenda at a rapid pace, and that there are particularly many financial policy tasks, is also seen as a reason for growing internal discontent.

An industry official stated, "Policies under the jurisdiction of the Financial Services Commission, such as loan regulations, debt restructuring for small business owners, productive finance, inbound and outbound capital market investment, and stock price manipulation, have been announced one after another." He added, "Even before policy announcements, research institutes receive many national policy tasks, and these tasks are basically handled by section chiefs, so the burden is reportedly heavy."

He continued, "Although the direction of the restructuring for the organization where section chiefs work has been determined, the people involved cannot know the details of the process, which also seems to be a factor increasing internal anxiety. I understand that each bureau within the Financial Services Commission has designated a representative section chief to share related information."

Currently, Chairman Lee is accompanying President Lee Jaemyung at the 80th United Nations General Assembly. Once Chairman Lee returns to Korea, a decision is expected to be made regarding the individual meetings. A senior official at the Financial Services Commission stated, "Even if it is not through individual meetings with the chairman, it is necessary to listen to the section chiefs."

Meanwhile, the government has announced that the organizational restructuring of the Ministry of Economy and Finance will take effect from January 2 next year. However, the specific details of the restructuring of the financial authorities will only be finalized once the Financial Supervisory Commission establishment bill is processed by the National Assembly's Political Affairs Committee. On September 24, the floor leaders of the ruling and opposition parties failed to reach a final agreement on the amendment to the Government Organization Act at the general assembly. The ruling Democratic Party of Korea decided to prioritize only four bills, including the Government Organization Act.

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