Will It Be Buried by 'Impeachment' or Samsung Investigation... Financial Authorities to Report to the National Assembly Tomorrow

National Assembly Political Affairs Committee to Hold Plenary Meeting
Ruling Party Expected to Target Lee Bokhyun Over "Samsung Investigation"

The National Assembly will resume discussions on financial issues starting this week with a report on the work status of financial authorities. However, as was the case two months ago, questions are expected to focus on the state of emergency and impeachment issues, meaning that the numerous pending financial legislative tasks are unlikely to see progress. In particular, this time, a fierce attack from the ruling party is anticipated against Lee Bok-hyun, the Financial Supervisory Service Governor who led the investigation into former Samsung Electronics Chairman Lee Jae-yong's alleged unfair merger and accounting fraud.

On December 18 last year, Kim Byung-hwan, Chairman of the Financial Services Commission (from the left), Han Ki-jung, Chairman of the Fair Trade Commission, and Lee Bok-hyun, Governor of the Financial Supervisory Service, attended the full meeting of the Political Affairs Committee held at the National Assembly in Yeouido, Seoul. Photo by Yonhap News

According to the National Assembly and the financial investment industry on the 17th, the National Assembly's Political Affairs Committee will hold a plenary meeting from 10 a.m. on the 18th to receive reports on the work status of financial sector supervisory agencies such as the Financial Services Commission and the Financial Supervisory Service. This marks the resumption of the Political Affairs Committee's plenary meeting after about two months. On the following day, the 19th, work reports from non-financial sector agencies, including the Office for Government Policy Coordination, are scheduled. On the last day, the 20th, in addition to the plenary meeting, the first and second subcommittees for bill review will also be held.

Questions from ruling and opposition party lawmakers are expected to focus on financial sector incidents such as cryptocurrency system failures and impeachment issues. A staff member from an opposition lawmaker's office explained, "We are reviewing various financial issues," but added, "The atmosphere is such that many questions related to impeachment are inevitable at this point." Another staff member from a ruling party lawmaker's office said, "Unlike in December, questions on issues such as amendments to the Capital Markets Act and financial accidents will also be raised."

In particular, questions are expected to be directed at Governor Lee Bok-hyun, who has been embroiled in responsibility debates related to the acquittal of Chairman Lee Jae-yong. Yoo Young-ha, a member of the Political Affairs Committee from the People Power Party, recently criticized Governor Lee on social media, stating, "Legal responsibility must be held for excessive investigations." A National Assembly official hinted, "An offensive in the Political Affairs Committee has already been forecast," calling it "the biggest point of interest this week."

Concerns are also growing within and outside the industry that the numerous pending financial legislative tasks could drift due to the impeachment political situation. The agenda for the bill subcommittee scheduled for the 20th was still announced as "undecided" as of that morning. Lawmakers' offices belonging to the Political Affairs Committee have only conveyed that relatively non-controversial bills will be discussed first at this week's bill subcommittee.

Currently, major legislative issues in the financial investment industry include amendments to the Capital Markets Act linked to the Commercial Act, as well as the Industrial Bank Act and the Depositor Protection Act. While the opposition demands amendments to the Commercial Act, the ruling party advocates for targeted amendments centered on the Capital Markets Act under the jurisdiction of the Political Affairs Committee. Amendments to the Loan Business Act, which include provisions nullifying illegal private loan interest, have effectively stalled despite passing the Political Affairs Committee earlier. Additionally, the opposition has recently raised voices for amendments to the Banking Act and the re-promotion of a windfall tax on the banking sector.

An industry insider pointed out, "Financial legislative tasks could drift as the presidential election phase shifts," adding, "Many tasks announced in this year's work report by financial authorities, including urgently needed discussions on amendments to the Capital Markets Act, virtual asset regulations, expansion of the authorized capital limit of the Industrial Bank, and mandatory separate management of settlement funds by PG companies, require legislative support to be feasible."