Kim Byunghwan Appointed as Second Financial Services Commission Chairman under Yoon Government, Top Priority "Real Estate PF Risk Management"

President Yoon Seok-yeol Appoints Kim Byung-hwan, Born 1971, as New Financial Services Commission Chairman
Direct Move from 1st Vice Minister of Economy and Finance to FSC Chairman in 10 Months
Challenges Include Real Estate PF, Household Debt, Stock Market Value Enhancement, and Short Selling System Improvement

[Image source=Yonhap News]

On the 4th, Kim Byung-hwan, the 1st Vice Minister of Strategy and Finance, was nominated as the new chairman of the Financial Services Commission. He is regarded as a policy expert well-versed in finance and macroeconomics. If Kim successfully passes the parliamentary confirmation hearing later this month, he will become the second chairman of the Financial Services Commission under the Yoon Seok-yeol administration.

He began his public service career in 1993 after passing the 37th Administrative Examination, starting at the former Ministry of Finance and Economy. He is a financial expert who has worked in the Financial Policy Office, Securities Business Division, and Securities System Division. At the Ministry of Strategy and Finance, he served as Director of Economic Analysis at the Economic Policy Bureau and as Director of the Economic Policy Bureau, following a path in economic policy. In the Financial Policy Bureau, he was recognized for his capabilities by introducing systems such as mutual funds and Primary Collateralized Bond Obligations (P-CBOs).

Following the launch of the Yoon administration, he was appointed as the Economic and Financial Secretary to the President’s Office, and just 10 months after being appointed as the 1st Vice Minister of Strategy and Finance in August last year, he is moving to the ministerial-level position of chairman of the Financial Services Commission.

Born in 1971, if Kim is appointed as planned, he will become the youngest chairman in the history of the Financial Services Commission. He is widely evaluated as having a high understanding of the Yoon administration’s financial policy direction and is expected to effectively carry out policies aimed at stabilizing the financial market.

Following the current chairman Kim Ju-hyun, Kim faces numerous challenges including real estate project financing (PF) and household debt management, which could impact the entire financial market. After the announcement of his appointment, Kim identified managing real estate PF as his top priority during a briefing at the Presidential Office.

The financial authorities have so far announced a soft-landing plan for restructuring real estate PF and have begun a thorough selection process. They must identify insolvent projects to proceed with light auctions or liquidation procedures, while ensuring smooth funding supply to viable projects, acting as a control tower.

He stated, "I will ensure that the goals of financial market stability, financial industry development, financial consumer protection, and support for the real economy are harmoniously achieved through communication with the market," adding, "Managing real estate PF risks will be my highest priority." Additionally, he must pay attention to capital market policies aimed at enhancing the stock market value-up program and further specifying improvements to the short-selling system.

As the youngest chairman, internal harmony and leadership within the Financial Services Commission will be necessary. There are only two executives at the director level or above younger than Kim, including Standing Commissioner Lee Hyung-joo (born 1972, 39th Administrative Examination). The next vice chairman candidates, Kwon Dae-young, Secretary General of the Financial Services Commission, and Lee Se-hoon, Senior Deputy Governor of the Financial Supervisory Service, were born in 1968 and 1970, respectively.

Kim also faces the task of managing relations with the Financial Supervisory Service, a partner in financial policy. Lee Bok-hyun, Governor of the Financial Supervisory Service, born in 1972, is a senior or junior alumnus from Seoul National University’s Department of Economics. Some speculate that with the youngest chairman and governor leading financial policy, a large number of young officials may be appointed to key positions.