Baek Hye-ryun, Chairman of the National Assembly's Political Affairs Committee, affiliated with the Democratic Party of Korea [Photo by Yonhap News]
[Asia Economy Reporter Song Seung-seop] Baek Hye-ryun, Chairperson of the National Assembly's Political Affairs Committee (Democratic Party of Korea), criticized the controversy over government intervention in the financial sector on the 8th, stating that it "is causing regression in our country's finance."
After attending the 50th anniversary ceremony of the Korea Federation of Savings Banks held at Lotte Hotel in Jung-gu, Seoul, Baek responded to a reporter's question about how she evaluates the rumors involving people connected to the current administration by saying, "It is not a desirable direction. The fact that such controversies arise is problematic, and if (appointments) actually happen, there are concerns in that regard."
Recently, in the financial sector, individuals classified as figures from the Yoon Seok-yeol administration have been mentioned as successors to CEOs whose terms are expiring. In the case of NongHyup Financial, the Executive Candidate Recommendation Committee has been activated, and there is a strong expectation that Son Byung-hwan, Chairman of NH NongHyup Financial Group, will be replaced. The leading candidate for the next chairman is Lee Seok-jun, former Minister for Government Policy Coordination, who was the first recruit in President Yoon Seok-yeol's presidential campaign. Similar criticisms have been raised in other financial groups, where individuals close to the administration are being rumored as candidates, sparking concerns that government-controlled finance is making a comeback.
The financial authorities maintain the position that "there is no government intervention." Lee Bok-hyun, Governor of the Financial Supervisory Service (FSS), met with reporters after the 'Research Institution Heads Meeting' held at the Bankers' Hall in Jung-gu, Seoul, the previous day, and stated, "What is certain is that there has been no interference in CEO appointments like in the authoritarian era," and rebutted, "In the case of NongHyup Financial, it is understood that the central association holds decision-making shares, but we have never given opinions or used anti-market methods." He added, "Managing CEO risks is the responsibility of the FSS, not a discretionary matter."
Baek evaluated Governor Lee Bok-hyun's remarks by saying, "They should be viewed separately." While acknowledging that "CEO risk is certainly a part that financial authorities must be responsible for," she expressed concern that "this stance cannot justify government-controlled financial administration."
She added, "I hope financial companies no longer feel the need to watch the political circles so closely."
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