Financial Services Commission Approves and Appoints at April 4 Emergency Meeting
Geun-ik Kim, New Senior Deputy Governor of the Financial Supervisory Service
[Asia Economy Reporters Kangwook Cho and Hyojin Kim] The appointment of deputy governors at the Financial Supervisory Service (FSS), which had been delayed for nearly two months, was carried out on the 4th. Kim Geun-ik, head of the Financial Intelligence Unit (FIU), was appointed as the Senior Deputy Governor. The Senior Deputy Governor oversees planning, management, strategic supervision, and the insurance sector.
Choi Sung-il, former Deputy Governor, was appointed as Deputy Governor for the Banking and Small Finance sector, and Kim Do-in, former Deputy Governor, was appointed as Deputy Governor for the Capital Markets and Accounting sector. They face numerous pending issues such as inspections and investigations accumulated due to the impact of the novel coronavirus disease (COVID-19) and the delayed personnel appointments.
The Financial Services Commission (FSC) held an extraordinary meeting on the same day and approved the FSS deputy governor appointment plan. The appointment of deputy governors at the FSS is made by the FSC upon the recommendation of the FSS Governor. During this process, personnel verification by the Blue House and the FSC is also conducted. There are four deputy governors in total, including the head of the Financial Consumer Protection Bureau. Since Kim Eun-kyung was appointed as the current head of the Financial Consumer Protection Bureau in March, the entire deputy governor lineup has been newly reorganized.
Newly appointed Senior Deputy Governor Kim graduated from Gwangju Kumho High School and Seoul National University with a degree in economics, and entered public service through the 34th Administrative Examination. He has served as Director of Financial Structure Improvement, Director of Banking, Head of the Financial Consumer Protection Planning Group, Head of the Financial Field Support Group, and Deputy Head of the Public-Private Joint Regulatory Improvement Promotion Group under the Prime Minister, before being appointed as FIU head in 2018. Since he is from the FSC, it is expected that there will be no significant changes in work compared to the tenure of the current Senior Deputy Governor Yoo Kwang-yeol, who is also from the FSC.
New Deputy Governor Choi graduated from Kyungshin High School in Seoul and Seoul National University with a degree in economics, and earned a master's degree in business administration from the University of Chicago and a doctorate in business administration from Chung-Ang University. He joined the Bank of Korea in 1987 and has held positions such as Director of Bank Supervision at the FSS, Director of General Supervision, Senior Director of IT and Financial Information Protection, and Deputy Governor in charge of Strategic Supervision. Deputy Governor Choi was the special prosecutor in charge of the 'Hana Bank Recruitment Corruption' case.
New Deputy Governor Kim graduated from Gwangju Inseong High School and Seoul National University Law School. He has served as team leader of the Asset Management Supervision Bureau, team leader of the Audit Office, director of the Asset Management Inspection Bureau, director of the Corporate Disclosure Bureau, and Deputy Governor in charge of Financial Investment at the FSS. He is regarded as a rational market-oriented figure. It is expected that he will be more market-friendly compared to current Deputy Governor Won Seung-yeon.
The appointment of FSS deputy governors was significantly delayed compared to expectations. In March, Kim Eun-kyung was appointed as Deputy Governor, and Senior Deputy Governor Yoo Kwang-yeol and Deputy Governors Won Seung-yeon and Kwon In-won were up for replacement. However, it is reported that there was a disagreement between FSS Governor Yoon Seok-heon and the FSC regarding Deputy Governor Won's position. Governor Yoon wished for Deputy Governor Won to remain, while the FSC strongly demanded a replacement. The matter was settled with Deputy Governor Won's replacement, and the Blue House verification process began in earnest.
As the appointment of deputy governors, who perform the substantive work of financial supervision, continued to be delayed, concerns and criticisms arose inside and outside the FSS that operations were practically close to a standstill.
A source in the financial sector said, "From the FSC's perspective, they had to consider the Blue House's inspection situation regarding the FSS," adding, "As a result, the personnel process could not proceed quickly." There is also an analysis that the appointment was delayed because the chain personnel reshuffle within the FSC, which would be inevitable once the FIU head position became vacant due to Kim's appointment as Senior Deputy Governor, was not quickly resolved.
With the new deputy governor appointments, it is expected that work to strengthen internal controls within financial companies and the financial consumer protection system based on them will accelerate. A senior official of the financial authorities said, "The Blue House still agrees with the FSS's focus under Governor Yoon on strengthening financial consumer protection and supervisory functions over financial companies."
The abolition of the Senior Deputy Governor system has not yet been finalized. Governor Yoon recently said, "Although there is no Senior Deputy Governor position in the regulations, it existed as a custom," and "Various options are being considered." The intention is to enhance work efficiency through a 'horizontal executive system.'
Current Senior Deputy Governor Yoo Kwang-yeol and Deputy Governors Kwon In-won and Won Seung-yeon held their retirement ceremonies and stepped down on the same day.
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