[Asia Exclusive] Jo Seongmok, Creator of the Term 'Seomin Geumyung', Leads Resolution of Savings Bank and Card Crises

Joseongmok, Head of the Seomin Financial Research Institute, a True Expert Dedicated to Realizing Seomin Finance
Felt the Need for a Specialized Seomin Finance Organization and Established the Institute Personally
Resolved Savings Bank Crisis and Card Company Data Breach While at the Financial Supervisory Service... Known as the 'Grim Reaper of Finance'
Produced the Hit 'Geunommoksoli' Using Real Voice of Voice Phishing Criminals to Raise Awareness

Josungmok, President of the Institute for Financial Inclusion, is being interviewed by Asia Economy on the 5th at an office in Mapo-gu, Seoul. Photo by Hyunmin Kim kimhyun81@

[Asia Economy Reporter Kim Min-young] Cho Seong-mok, president of the Institute for Financial Inclusion, made the financial sector tremble during his time at the Financial Supervisory Service (FSS) by leading the large-scale savings bank insolvency crisis and resolving the credit card company information leak incident. In the industry, he was known as the "Grim Reaper." Now in the private sector, he refers to those times as "bad deeds," but said, "I have no regrets about the past." Although he has settled the "uncomfortable relationship" with the industry, he confessed that there is still a line that cannot be crossed.

Born in 1961, he grew up as the eldest son among five siblings in a village in Buyeo-gun, Chungnam Province, where buses run only three times a day. After finishing middle school in the countryside, he entered Gang-gyeong Commercial High School in Nonsan-si, Chungnam. At that time, his only thought was "to enter society quickly, earn money, and help my family." He joined the Bank of Korea in 1979 at the age of 19 but felt it was not the place for him.

In 1999, as head of the Non-Institutional Finance Investigation Team at the FSS, he encountered Korea's private loan market. At that time, in the space where the Interest Rate Restriction Act had been abolished, brutal high interest rates and "long-term waiver agreements" were rampant. Feeling the urgent need to introduce a system to prevent damage, he established and operated a Private Finance Damage Reporting Center at the FSS. He went to Japan to study the moneylending system and market implemented since 1983. He contributed to the enactment of the Act on Registration of Credit Business and Protection of Finance Users (the Credit Business Act) in 2002.

The Act on the Establishment of the Dormant Deposit Management Foundation, enacted in 2007, was entirely his idea. He proposed the legislation to lawmakers based on the idea that dormant deposits could be used as loan funds for low-credit, low-income people. The dormant deposit funds collected have now reached 1.6 trillion won. This money became seed money for policy financial products for the underprivileged (such as microfinance). Recently, through legal amendments, 200 billion won from dormant cashier's check issuance funds also became a resource. He said, "It is rewarding and prideful because it was the result of my efforts on the ground, even though mid-level officials at the FSS criticized me for being 'overly meddlesome.'"

What made President Cho known to the world was the savings bank crisis that broke out in 2011. He was given the special mission to thoroughly investigate the rapidly growing savings banks. He recalled, "I was at a loss where to start," and "It was overwhelming to inspect all with limited personnel, and many business reports were false, so it was difficult to even select inspection targets without knowing which were more insolvent." He came up with the idea of forming a "special task force" of accountants who could best understand the internal situation of the companies. He recruited 100 accountants as inspectors, deployed 60 from the Korea Deposit Insurance Corporation, and 179 internal personnel from the FSS, totaling 339 people, achieving the removal of 33 insolvent savings banks. At that time, savings bank owners, CEOs, and executives were sent to prison one after another.

Josungmok, President of the Institute for Financial Inclusion, is being interviewed by Asia Economy on the 5th at an office in Mapo-gu, Seoul. Photo by Hyunmin Kim kimhyun81@

He was also called upon by the FSS during the 2014 credit card company information leak incident. He was asked to play the role of a "troubleshooter" again. At that time, competent security personnel were dispatched from the Financial Security Institute (now the Financial Security Agency) and assigned to three card companies, conducting inspections that led to business suspension measures within three months.

One of the FSS's hit products, "That Voice" (the actual voice of voice phishing criminals), remains his final "work." In recognition of his achievements, he was awarded the Order of Magnolia Medal in 2016.

◆Career

▲Born 1961, Buyeo, Chungnam

▲Graduated 1979, Gang-gyeong Commercial High School, Nonsan

▲Joined Bank of Korea, 1979

▲Head of Non-Institutional Finance Investigation Team, FSS, 1999

▲Director of Savings Bank Inspection Division 1, FSS, 2011

▲Director of Specialized Credit Inspection Office, FSS, 2014

▲Senior Director, FSS, 2015

▲Advisor, SK Lubricants, 2016

▲President, Institute for Financial Inclusion, 2017

▲2nd Ombudsman, Financial Services Commission, 2018

▲Full-time Vice Chairman, Korea FPSB, 2019