Financial Supervisory Service Executive Personnel Changes Expected at Month-End... Deputy Minister of Ministry of Economy and Finance Considered for Senior Deputy Governor

Additional personnel changes expected after executive reshuffle late this month and National Assembly audit
Lee Chan-woo, former Deputy Minister at Ministry of Economy and Finance, likely to become Senior Vice Chairman... longest-serving Deputy Minister in Ministry history
Attention also on whether Kim Eun-kyung, Vice Chairman overseeing consumer protection, will be replaced

Jeong Eun-bo, the new Financial Supervisory Service chief, arrived at the Government Seoul Office on the 2nd to meet Ko Seung-beom, the Financial Services Commission chairman who took office on the 31st of last month.
[Image source=Yonhap News]

[Asia Economy Reporter Minwoo Lee] The Financial Supervisory Service (FSS) is expected to push for executive personnel changes by the end of this month. Jeong Eun-bo, who took office earlier this month, is anticipated to replace about half of the executives, including the Senior Deputy Governor, in his first personnel reshuffle.

According to industry sources on the 26th, the Blue House is conducting personnel verification for FSS executives. While the timing of the personnel changes is expected to be at the end of October after the National Assembly audit, some executives, including the Senior Deputy Governor, may be replaced as early as the end of this month. It is speculated that some executive personnel changes will be made first within a range that does not significantly interfere with the audit, and the remaining changes will be carried out after the comprehensive audit ends on the 21st.

Earlier, just four days after taking office on the 10th of last month, Governor Jeong requested 14 executives?including four Deputy Governors and ten Deputy Governors-General?to submit their resignations collectively. While most accepted and submitted their resignations, three executives reportedly refused, citing the need to guarantee their terms to maintain the independence of financial supervision.

First, the replacement of the Senior Deputy Governor is being discussed. Traditionally, the Senior Deputy Governor of the FSS has been a former official from the Financial Services Commission or the Ministry of Economy and Finance, serving as a communication channel between the FSS and the Financial Services Commission. It is understood that Governor Jeong intends to renew this cooperative system by making a replacement.

Lee Chan-woo, Chairman of the Gyeongsangnam-do Economic Innovation Promotion Committee, is considered a candidate to succeed the current Senior Deputy Governor Kim Geun-ik. Chairman Lee, a 31st administrative examination pass, has served as Director of the Future Society Policy Bureau and the Economic Policy Bureau at the Ministry of Economy and Finance, and was the longest-serving Deputy Minister at the Ministry. He is known to be a close associate of Governor Jeong Eun-bo, having worked together at the Ministry of Economy and Finance. He is also the younger brother of Lee Yong-woo, a member of the Democratic Party of Korea.

Deputy Governors of the FSS are appointed by the Financial Services Commission upon the recommendation of the FSS Governor, while Deputy Governors-General are directly appointed by the Governor. Both positions undergo personnel verification by the Blue House. They have guaranteed three-year terms; the Governor has the appointment authority but not the dismissal authority.

Within the financial sector, it is expected that about half of the executives will be replaced, including the Senior Deputy Governor, two Deputy Governors promoted internally, and three Deputy Governors-General whose terms expire in March next year. Personnel changes may also be linked to related institutions such as the Korea Financial Security Institute. Kim Young-gi, President of the Korea Financial Security Institute, has been serving beyond his term, which ended in April, as no successor has been appointed yet. Once FSS personnel changes occur, a chain reaction of position shifts is expected.

Particularly, attention is focused on whether Deputy Governor Kim Eun-kyung will be replaced. Appointed through an external recruitment process in March last year, Deputy Governor Kim is in charge of the Financial Consumer Protection Department. There is an interpretation that replacing the executive overseeing the department at the early stage of the full enforcement of the Financial Consumer Protection Act could be burdensome.