Did You Really Have to Go to the Stock Manipulation Scandal?... Controversy Over Financial Supervisory Service Chief Lee Bok-hyun's Overseas Business Trip

National Assembly Political Affairs Committee Clashes Over Financial Supervisory Service Chief's Overseas IR Trip
Political Affairs Chair "Deeply Regretful at This Time"
Ruling Party "Stock Manipulation Unrelated to Trip, Urge Restraint in Criticism"

As the financial market is shaken by the crash triggered by Soci?t? G?n?rale (SG) Securities, criticism has been raised over Financial Supervisory Service (FSS) Governor Lee Bok-hyun’s absence from the full meeting of the Political Affairs Committee during such a critical time due to his overseas business trip.

At the full meeting of the Political Affairs Committee held at 2 p.m. on the 11th at the National Assembly in Yeouido, Seoul, the opposition Democratic Party of Korea (DPK) strongly condemned Governor Lee’s absence. Currently, Governor Lee is visiting Singapore from the 8th to the 10th and Indonesia from the 11th to the 12th to attend investor relations (IR) presentations targeting local institutional investors, aiming to support domestic financial companies’ overseas investment attraction and expansion. The trip also includes KB Financial Group Chairman Yoon Jong-kyu, Hana Financial Group Chairman Ham Young-joo, Mirae Asset Securities Chairman Choi Hyun-man, Korea Investment & Securities CEO Jung Il-moon, Korean Re CEO Won Jong-gyu, and Samsung Fire & Marine Insurance CEO Hong Won-hak.

On the 10th (local time) at the Pan Pacific Hotel in Singapore, Han Young-joo, Chairman of Hana Financial Group (right), and Lee Bok-hyun, Governor of the Financial Supervisory Service (left), are taking a commemorative photo with investment expert Jim Rogers.
[Image source=Yonhap News]

Baek Hye-ryun, chairperson of the Political Affairs Committee, criticized, "The full meeting of the Political Affairs Committee was scheduled much earlier for today," adding, "The SG-related stock manipulation incident is serious, and it is very regrettable that the FSS Governor left without notifying the committee." She continued, "This is only the second time in FSS history that the governor has gone overseas for IR. It is questionable whether it was necessary to go during such a sensitive time."

Kim Jong-min, the opposition party’s secretary from the Democratic Party, said, "It is highly inappropriate to attend a long IR event with supervised institutions’ heads," adding, "He should have returned quickly or postponed the overseas schedule. Please report to the Political Affairs Committee on measures to prevent recurrence so that this never happens again."

On the other hand, Yoon Han-hong, the ruling party’s secretary from the People Power Party, stated, "The FSS Governor is not an ex officio member of the standing committee," and "The governor’s business trip plan was fully reported to the committee chair and secretaries." He added, "Attendance requires agreement between the ruling and opposition secretaries, and it is not right to criticize the governor for not attending when there was no such agreement." He further emphasized, "The FSS Governor’s business trip was scheduled much earlier. Since it was a trip planned with private financial institutions, it could not be changed, so he could not attend. The stock manipulation incident is unrelated to this trip."

Song Seok-jun, a People Power Party lawmaker, also said, "The FSS Governor’s overseas trip is not a pleasure trip," adding, "He went abroad to attract overseas investment and improve South Korea’s financial environment. Instead of criticizing, please refrain from such remarks."