[Financial Services Commission Report] Eun Seong-su: "Financial Supervisory Service Independence Does Not Make Logical Sense"

Eun Sung-soo, Chairman of the Financial Services Commission

[Asia Economy Reporter Kim Hyo-jin] Eun Sung-soo, Chairman of the Financial Services Commission, refuted the controversy over the independence of the Financial Supervisory Service (FSS), saying it is "logically inconsistent."

According to financial authorities on the 19th, Chairman Eun stated at an online briefing on the 2021 work plan the previous day, "Dividing the two (financial promotion and financial supervision) is logically inconsistent and also unrealistic," adding, "In reality, supervisory policies and financial policies are intertwined, making it impossible to separate them."

Chairman Eun pointed out, "There are things that both sides want to do when they are good, and things that both sides avoid when they are unpleasant," and emphasized, "The reform of the supervisory system is closely related to the overall government organization law, so it is necessary to consider whether now is an appropriate time to revise the government organization law."

He also mentioned, "If done ideally as academia suggests, I think it might hit a limit."

Yoon Seok-heon, Governor of the FSS, stated at a year-end press conference last month, "Under the dual supervisory system (between the Financial Services Commission and the Financial Supervisory Service), the responsibility between supervisory policy and execution becomes unclear," adding, "As a result, post-facto improvements are not well made, leading to inefficiency in financial supervision and consumer damage."

He also said, "We are reviewing various alternatives regarding the reform of the financial supervisory system, including overseas cases," and revealed plans to soon submit a related proposal to the National Assembly.

Governor Yoon expressed the same position during the National Assembly audit in October last year.