Changed Lee Bok-hyun, Financial Supervisory Service Chief... Controlling Messages While Reading Memos

Reads memo even during apology at the meeting on the 10th

An open discussion for the advancement of the capital market, jointly hosted by the Financial Supervisory Service, the National Pension Service, and the Korea Exchange, was held at the Korea Economic Daily Association Hall in Seoul. Kim Tae-hyun, Chairman of the National Pension Service (from the left), Lee Bok-hyun, Governor of the Financial Supervisory Service, and Kim Ki-kyung, Vice Chairman of the Korea Exchange, are heading to their seats after a commemorative photo. Photo by Heo Young-han younghan@

Lee Bok-hyun, Governor of the Financial Supervisory Service, is paying close attention to message management. This is interpreted as his determination to prevent further confusion in the market following criticism over his previous remarks on loans.

On the morning of the 12th at the Korea Economic Association Conference Hall in Yeouido, Seoul, Governor Lee held an "Open Discussion for the Advancement of the Capital Market" together with the National Pension Service and the Korea Exchange, and conducted a back briefing with reporters. A notable scene occurred during this event: Governor Lee explained the significance of the discussion while referring to notes.

Governor Lee is known for his eloquence and straightforward speaking style. Since his appointment, he has never simply read from notes or given ambiguous answers in front of reporters. This was one of the reasons why the press favored him. However, this time, he held notes while conducting the back briefing in front of reporters.

This has been interpreted as a sign of restraint following criticism that his speaking style undermines policy consistency (trust). Governor Lee also read from notes while apologizing for causing market confusion related to household loan management during the bankers' meeting held on the 10th.

This also attracted attention inside and outside the financial authorities. It was the first time Governor Lee apologized for confusion he himself caused, rather than taking moral responsibility. After seeing Governor Lee apologize at the bankers' meeting, a financial industry official said, "It's surprising that the Financial Supervisory Service Governor apologized personally."

Governor Lee's remarks have sparked controversy in the past as well. Earlier this year, when discussions on amending the Commercial Act to expand the scope of directors' fiduciary duties to include "shareholders" became a hot topic, Governor Lee brought up the idea of abolishing the crime of breach of trust. This led to retroactive discussions on the abolition of breach of trust in relation to the Commercial Act amendment from both the business community and the financial investment sector. Although the Financial Services Commission and others clarified that nothing had been decided and struggled to manage the situation, Governor Lee did not apologize at that time.

Governor Lee has also become more cautious in responding to reporters' questions. After the "Open Discussion for the Advancement of the Capital Market," when asked about the National Pension Service's increased domestic investment related to value-up, he said, "(Kim Tae-hyun) the National Pension Service Chairman seems to have said enough, so I will leave the answer at that." He avoided answering some questions in this manner.

Another financial sector official said, "Policies related to legal compliance, such as short selling and stock price manipulation, are effective with direct and clear communication, but household loans have traditionally been a carefully managed area through window guidance by the Financial Services Commission, so the backlash from the Financial Supervisory Service Governor's speaking style seemed significant. Since the Governor's speaking style has both strengths and weaknesses, it will be necessary to continue observing it."