Yoon Seokheon Departs... Will the Long-Term Acting System at the Financial Supervisory Service Continue?

Appointment of Successor Director Delayed... Kim Geun-ik Acting as Deputy Director

[Image source=Yonhap News]

[Asia Economy Reporter Jin-ho Kim] With the term of Yoon Seok-heon, Governor of the Financial Supervisory Service (FSS), having ended yesterday, the FSS will operate under the acting Chief Deputy Governor for the time being. It is reported that the selection process for the successor governor has not been practically initiated.

According to the FSS on the 8th, Governor Yoon completed his three-year term after a farewell ceremony on the 7th. He served the full three-year term at the FSS before retiring, becoming the third after former governors Yoon Jeung-hyun and Kim Jong-chan.

Initially, there was speculation about the possibility of reappointment as no rumors or successor selection took place until the end of Governor Yoon’s term. However, due to controversies surrounding private equity fund responsibilities and labor-management conflicts over personnel issues, he ultimately left the FSS.

The vacancy left by Governor Yoon has been filled by Chief Deputy Governor Kim Geun-ik. Article 30 of the Act on the Establishment, etc. of the Financial Services Commission stipulates that "when the governor is unable to perform duties due to unavoidable reasons, the deputy governor shall act on behalf of the governor in the order prescribed by the FSS bylaws." The FSS governor is appointed by the president upon recommendation by the Financial Services Commission chairman.

It is known that the Blue House is preparing a reshuffle of the economic line, including Deputy Prime Minister and Minister of Economy and Finance Hong Nam-ki and Financial Services Commission Chairman Eun Sung-soo, so the appointment of the FSS governor is expected to be delayed for the time being. The appointment will likely be finalized only after the positions of these officials are clarified.

‘Communication’ and ‘harmony’ are cited as essential qualities for the next FSS governor. Governor Yoon had ongoing serious conflicts with the labor union, accusing him of promoting employees involved in hiring corruption allegations. In relation to this, the union held a press conference in front of the Blue House fountain in March, demanding Governor Yoon’s resignation.

Governor Yoon was also criticized for lacking communication both internally and externally, including with the media. After the farewell ceremony, he told reporters, "I regret not communicating well (with the media, etc.)."

Meanwhile, individuals mentioned as candidates for the FSS governor include Jeong Eun-bo, South Korea-US defense cost-sharing negotiation ambassador; Kim Yong-beom, former 1st Vice Minister of Economy and Finance; Kim Jong-ho, former Senior Secretary to the President for Civil Affairs; Jeong Jae-wook, former president of KDB Life Insurance; and Choi Un-yeol, former member of the National Assembly. Within the FSS, Chief Deputy Governor Kim and Director of the Financial Consumer Protection Bureau Kim Eun-kyung are also considered potential candidates.