[1mm Financial Talk] "Engage in Proactive Administration"... Financial Services Commission Awards Bonuses

Financial Services Commission Recognizes Outstanding Cases of Proactive Administration
Generous Rewards for Excellent and Encouraged Employees

The Financial Services Commission selected outstanding employees who implemented proactive administration measures such as the ‘Erroneous Remittance Return Support System’ and awarded them performance bonuses and prizes. This was to break the welfare inertia in the public sector and promote a culture of proactive administration that takes risks.

According to the financial sector on the 9th, the FSC recently reviewed 14 cases of proactive administration from the second half of 2021, selected 7 cases, and awarded 8 responsible employees.

Three outstanding employees and five commendable employees received the FSC Chairman’s commendation and prize money. Outstanding employees additionally received performance bonus S, equivalent to the highest score in management evaluation, while commendable employees received additional points in the performance evaluation.

Proactive administration refers to public officials actively handling their duties for the public interest, such as improving unreasonable regulations. It is the opposite of passive administration, which merely repeats routine tasks. The FSC and other government ministries operate various reward and exemption systems to encourage proactive administration.

When the FSC solicited cases of proactive administration in the second half of last year, it offered incentives such as special promotions, special salary increases, and priority selection for long-term overseas training. The ‘public perception’ factor accounted for 40%, the highest weight in the selection process. The evaluation was conducted by an internal assessment team composed of directors and above, reflecting discussions from the proactive administration monitoring team.

The ‘Erroneous Remittance Return Support System’ was selected as an outstanding case. This system is a policy that quickly and effectively returns mistakenly sent money through the Korea Deposit Insurance Corporation. Korea is the first country to implement this. It was highly evaluated for generating public interest through forums, broadcast interviews, and articles to address concerns from the National Assembly.

The launch of the ‘Haetsal Loan Card’ for the lowest credit borrowers was also selected as an outstanding case. The Haetsal Loan Card is issued to the bottom 10% in credit scores who had difficulty obtaining credit cards. It attracted high interest, with 9,000 applicants in the first three days after launch. Although there were concerns about moral hazard before the policy launch, voluntary participation from the card industry was induced through press releases and card news.

Proactive administration cases were also found in the MyData sector. The scope of information provision was expanded through meetings among sectors, the Legal Interpretation Review Committee, the Financial Regulation Sandbox, and amendments to supervisory regulations. The mandatory implementation of APIs (Application Programming Interfaces) was postponed, and a testing period was provided to reduce confusion.

Commendable cases included simplifying claims for hidden insurance money, finding hidden assets in the mutual finance sector, the visiting financial regulation sandbox, and the transition of P2P online investment-linked finance businesses.