['Geumpia' Cartel] ③ Yoon Also Mentioned 'Dismantling Privileges'... "Must Break Closedness"

Public Officials Ethics Committee Criticized for 'Self-Review'
Weakening Bonds Between Predecessors and Successors Is Key

As the practice of former officials from the Financial Supervisory Service and the Financial Services Commission rotating through key positions in private financial companies and public institutions becomes entrenched, concerns are rising that the 'Geumpia (Financial Authorities + Mafia)' cartel is solidifying. Experts emphasize the need to improve the personnel system to weaken the ties between former and current public officials.

The practice of reemployment of former officials from the authorities was particularly strengthened during the previous administration. According to data on reemployment of retirees received by Rep. Choi Seung-jae of the People Power Party from the FSC and FSS, the number of reemployed retirees, which had remained in the teens, increased to 35 and 44 in 2020 and 2021 respectively, the latter half of the previous administration. Rep. Choi said, "In recent years, retired public officials have moved to private institutions with high salaries, creating a foundation for the formation of a cartel," adding, "A so-called culture of 'preferential treatment for former officials, overlooking, pulling up and pushing' has emerged, leading to unreasonable incidents, which seem to have intensified especially during the previous administration in recent years." He stressed, "Since President Yoon Seok-yeol has emphasized 'eradicating the cartel of vested interests,' the current government must conduct an in-depth investigation and root out social evils such as financial cartels."

[Image source=Yonhap News]

The current employment review system by the Public Officials Ethics Committee, introduced to prevent conflicts of interest, is widely regarded as ineffective. According to the data, out of 153 cases combined from the FSC and FSS, only 7 cases (about 4%) were judged as employment restrictions or disapprovals. Currently, the government Public Officials Ethics Committee restricts employment for three years in places related to the departments or institutions where the official worked during the five years prior to retirement to prevent undue influence or interference with fair job performance. When seeking employment within three years after retirement, approval or a positive judgment from the Ethics Committee is required.

There were cases that passed the employment review but were difficult to consider unrelated to their duties. For example, Mr. A, who belonged to the Insurance Supervision Bureau, moved to become a deputy general manager at H Insurance Company, and Mr. B from the Capital Market Investigation Bureau moved to become an executive director at K Securities. There is also 'career laundering,' where officials transfer early to unrelated departments to pass the review, but it is difficult to filter out, according to a government official.

Experts emphasize that to ensure objective reviews, the composition of the Public Officials Ethics Committee itself must be changed. According to Article 9 of the Public Officials Ethics Act, the committee consists of 13 members, including nine appointed members such as judges, prosecutors, lawyers, and educators, as well as four vice-minister-level appointees from government ministries. This has led to criticism that neutrality is not guaranteed due to 'self-review.' Kim Jae-hoon, a senior researcher at the Korea Development Institute (KDI), suggested, "Public officials should be excluded to prevent conflicts of interest," and proposed, "Introducing a jury system involving ordinary citizens could be considered."

There are also calls to fundamentally improve the closed personnel structure of the public service. In a closed culture, networks between predecessors and successors deepen, increasing the possibility of lobbying and illegal activities. Kim said, "If more people with diverse backgrounds enter public service, a monitoring atmosphere is created, making corruption less likely," adding, "Of course, corruption cannot be completely eliminated, but it is better than maintaining a closed organization."