Jeong Eun-bo, Financial Supervisory Service Chief, "A Heavy Responsibility in Difficult Times... Expanding Trust in the Financial Industry"

"Three Aspects to Redefine the Direction Financial Supervision Should Pursue"
"A Perfect Storm May Occur... Facing a Challenging Financial Environment"
"Communication with Financial Markets... The Core of Financial Supervision Is Support, Not Regulation"

Jeong Eun-bo, New Governor of the Financial Supervisory Service

[Asia Economy Reporter Kwangho Lee] Jeong Eun-bo, the new Governor of the Financial Supervisory Service (FSS), stated on the 6th, "We will redefine the direction that financial supervision should pursue."

In his inaugural speech on the same day, Governor Jeong said, "I feel a heavy responsibility as I take on the important role of FSS Governor at a time when domestic and international economic and financial risk factors are increasing."

Governor Jeong diagnosed, "We are facing a challenging financial environment where urgent financial support is still needed for the recovery of the real economy, while excessive private sector debt must be managed."

He continued, "There is a concern that a so-called 'perfect storm' could occur, where various risks such as the potential expansion of insolvency among marginal companies and self-employed individuals, and price adjustments of assets with bubble concerns, converge simultaneously."

He also expressed, "The recent large-scale damage to financial consumers caused by private equity fund insolvencies has raised issues of trust erosion in the financial market as well as accountability of financial authorities," adding, "We must also respond without fail to the platformization of finance for big tech, and the expansion and changes in finance such as cryptocurrencies and virtual assets."

As solutions, Governor Jeong presented the directions that financial supervision should pursue from three perspectives.

Governor Jeong emphasized, "We will focus on financial supervision based on laws and principles," and stated, "To successfully achieve the intended goals such as financial market stability, sound management of financial companies, and protection of financial consumers, every administrative action in financial supervision must be based on laws and principles."

He added, "We will harmoniously operate both proactive and reactive supervision," noting, "Desirable financial supervision is to prevent incidents in advance through proactive guidance and non-action opinions."

Furthermore, he said, "We will continue efforts to protect financial consumers, which have recently taken root in the financial market," and added, "The Financial Consumer Protection Act is scheduled to be fully enforced starting in September. We need to check whether financial companies face any difficulties in compliance and actively resolve any vulnerabilities."

In conclusion, Governor Jeong stated, "The attitude of employees is important for redefining financial supervision," and urged, "Engage in active communication with the financial market and always remember that the essence of financial supervision lies not in regulation but in support."