Eun Sung-soo: "Comprehensive Private Equity Fund Investigation is a Chance for Self-Regulation"

Eun Sung-soo, Chairman of the Financial Services Commission, is delivering the keynote speech on the balanced development plan of innovation and security at the "9th Information Security Day Commemorative Seminar for Financial Company CEOs" held at the Four Seasons Hotel in Jongno-gu, Seoul on the 7th. Photo by Moon Ho-nam munonam@

[Asia Economy Reporters Kangwook Cho, Minyoung Kim] Eun Seong-su, Chairman of the Financial Services Commission, expressed a strong commitment to the investigation on the 7th, stating that "a full-scale investigation of private equity funds will be an opportunity for financial companies to self-correct."

Chairman Eun made these remarks to reporters after attending the '9th Information Security Day Commemorative Seminar for CEOs of Financial Companies' held at the Four Seasons Hotel in Gwanghwamun, Seoul.

He recently announced plans for a full-scale investigation of approximately 14,000 private equity funds. However, the Financial Supervisory Service union pointed out that a detailed inspection of over 10,000 funds would take decades, and the industry also raised doubts about the effectiveness of such a full-scale investigation.

In response, Chairman Eun said, "Isn't a full-scale investigation the best method if there is a food poisoning outbreak in a kindergarten, without any complications?" He added, "As a responsible authority, I mentioned a full-scale investigation, and if I wanted to shift responsibility, I would have done nothing and stayed silent."

He viewed the investigation as having significant potential for improvement within the overall process, rather than focusing solely on its physical effectiveness.

Chairman Eun stated, "If the Board of Audit and Inspection conducts an audit, we (the Financial Services Commission) also review it again, and I believe financial companies can also self-correct or fix their own errors." He questioned, "If there is a crackdown on drunk driving, people don't drive after drinking, right?"

He particularly emphasized that trust and security have become the most important factors as the financial industry becomes digitalized.

Chairman Eun stressed, "If this continues and consumers feel they cannot entrust their money to private equity funds, not only the public but also fund companies and the financial system as a whole could become victims. By removing some problems through a full-scale investigation and providing reassurance, the public will have good investment opportunities and the financial industry will also develop."