Former Governor Yoon Seok-heon’s 'Successor Search' Prolonged
Leading Candidates Face Union Opposition, Appointment Stalled
Former Bureaucrats Also Challenging... Blue House Considers 'Internal Promotion' Option
[Asia Economy Reporter Kim Jin-ho] As the government’s search for a successor to former Financial Supervisory Service (FSS) Chairman Yoon Seok-heon continues for nearly 50 days, rumors of internal promotions have begun to attract attention. This is because all the professor candidates who were considered strong contenders for the FSS chairman position failed to overcome the hurdle of opposition from the FSS labor union. Considering the short term and the need for swift organizational stability, it is expected that the Blue House will pull out the ‘internal promotion’ card.
According to the financial sector on the 23rd, although former Chairman Yoon’s retirement is just about two months away, the government has yet to finalize the successor appointment process. It was initially expected to be included in the ministerial and vice-ministerial personnel reshuffle in early to mid-this month, but due to union opposition and other variables, the process is reportedly being reconsidered from scratch.
As candidates to succeed former Chairman Yoon, Professor Lee Sang-bok of Sogang University Law School and Professor Won Seung-yeon of Myongji University’s Department of Business Administration have been mentioned. The Blue House’s policy stance is that a private-sector figure should take the helm of the FSS to maintain the financial reform and consumer protection line that has been pursued since the Moon Jae-in administration.
However, all of them have effectively lost their chance of appointment due to opposition from the FSS labor union. The union strongly opposes the idea of professor candidates leading the organization, arguing that they lack political acumen and are too focused on theory. In the case of Professor Won, there are also reports that his history of frequent clashes with the Financial Services Commission during his tenure as FSS Deputy Chairman has been a stumbling block.
In response, the Blue House is reportedly deliberating over remaining options such as bureaucrats or internal promotions. However, within the financial authorities, it is considered unlikely that a bureaucrat will be appointed given the short nine-month term. A government official predicted, "Powerful bureaucrats are more likely to seek the next opportunity rather than take on the FSS chairman position."
Due to the complex situation, recent attention has focused on rumors of internal promotion of a senior FSS official. The plan is to promote Kim Geun-ik, the acting FSS chairman and senior deputy chairman, prioritizing a short term and rapid organizational stability. Kim is well-regarded because the internal staff’s response to him is not negative, and his background in the Financial Services Commission could help foster harmony among financial authorities.
A financial sector official said, "If the vacancy lasts too long, there is concern that financial supervisory work could be disrupted," adding, "Considering it is the end of the administration, it seems necessary to appoint a safe figure quickly to stabilize the organization."
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