Jeong Eun-bo, Nominee for Financial Supervisory Service Chief, "Will Redefine Financial Supervision Direction"

"Focus on Financial Supervision Based on Law and Principles"
"Harmonious Operation of Sanctions and Proactive Guidance"

Jeong Eun-bo, the Special Representative for the Korea-US Defense Cost-Sharing Negotiations, is departing through Terminal 2 of Incheon International Airport on the morning of the 4th to attend the 9th meeting for the conclusion of the 11th Special Measures Agreement (SMA) on defense cost-sharing between Korea and the US, held in Washington, USA. Photo by Moon Ho-nam munonam@

[Asia Economy Reporter Jin-ho Kim] Jeong Eun-bo, the nominee for the Governor of the Financial Supervisory Service (FSS), stated, "I will redefine the direction that financial supervision should pursue at this point in time."

In a statement on the 5th, Jeong said, "I feel a heavy responsibility in taking on the important role of FSS Governor amid difficult domestic and international economic conditions, including the ongoing impact of COVID-19."

Jeong emphasized, "I will focus on financial supervision based on laws and principles," adding, "I will strive not only in substantive aspects but also in procedural aspects."

He added, "I will harmoniously operate both ex-post supervision such as sanctions and ex-ante supervision such as proactive guidance."

He also pledged to continue efforts to protect financial consumers. Given the challenging domestic and international conditions, he stated that he will manage risk factors in cooperation with related agencies based on his experience.

Jeong is a seasoned bureaucrat in the financial and economic policy field, having served as Secretary-General of the Financial Services Commission (FSC), Deputy Minister of the Ministry of Economy and Finance, and Vice Chairman of the FSC. He is regarded as having expertise in financial policy and international finance, as well as broad understanding and experience in macroeconomics.

Jeong’s top priority is internal stabilization of the FSS. Since the resignation of former Governor Yoon Seok-heon, the FSS has been struggling with the aftermath of the private equity fund scandal. The atmosphere has been unsettled due to disciplinary actions against executives and employees by the Board of Audit and Inspection, and the organization faces pressure from the National Assembly to restructure, holding the FSS accountable for inadequate supervision.

Another challenge Jeong must address is the precedent where the previous three heads repeatedly clashed with the FSC, resulting in disadvantages in budget and personnel support. However, since Jeong comes from the FSC, the higher authority, many expect that he will help foster harmony among financial authorities.

Key tasks also include strengthening regulations on cryptocurrencies, which are full of consumer protection issues, and managing household debt, which has become the biggest risk factor for the Korean economy. However, there is skepticism about whether he can overcome the limitation of being essentially a temporary appointee for about 10 months, as he is likely to step down after the new government takes office following next year’s presidential election. Critics argue that his term is too short to resolve the many challenges facing the FSS.