Lee Bok-hyun, Governor of the Financial Supervisory Service (FSS), who has publicly opposed the exercise of veto power over the amendment to the Commercial Act, has reportedly tendered his resignation to Kim Byung-hwan, Chairman of the Financial Services Commission (FSC), his superior in the organizational hierarchy. However, it has been confirmed that members of the F4 (Macroeconomic and Financial Issues Meeting), including Chairman Kim, Deputy Prime Minister and Minister of Economy and Finance Choi Sang-mok, and Bank of Korea Governor Lee Chang-yong, have for now persuaded him to reconsider. Lee's future is expected to be decided after the Constitutional Court's ruling on President Yoon Suk-yeol's impeachment.
"I Expressed My Position but Was Persuaded by F4... Will Attend Tomorrow's F4 Meeting"
On the morning of the 2nd, Lee appeared on 'CBS Radio Kim Hyun-jung's News Show' and, when asked about his future, said, "I contacted the Chairman of the Financial Services Commission to convey my position." As the head of the FSS, Lee had previously declared that he would oppose the government's exercise of veto power over the amendment to the Commercial Act "even at the risk of my position," but after Prime Minister and Acting President Han Duck-soo exercised the veto power the day before, it was confirmed that he ultimately tendered his resignation.
He explained, "After I spoke with the Chairman of the Financial Services Commission, the Deputy Prime Minister and the Governor of the Bank of Korea also contacted me, saying that the market situation is very difficult and that rash actions should be avoided," adding, "I said that I am a public official and have already made my statement, but they suggested we meet at tomorrow morning's F4 meeting." He also said, "Tonight, the U.S. will announce reciprocal tariffs, and we need to observe the exchange rate and financial market conditions afterward, so I cannot miss tomorrow's F4 meeting," adding, "After discussing market issues and responses, we will talk about (my future) then."
He further noted that realistically, the outcome of the Constitutional Court's ruling on President Yoon Suk-yeol's impeachment on the 4th, and whether the president returns to office, cannot be ignored, saying, "As long as the appointing authority is the president, I think it is most prudent to communicate any position directly to the president."
"If Yoon Were Here, Veto Would Not Have Been Exercised"…Criticism of Chey Tae-won's 'Opposition to Commercial Act'
While respecting Acting President Han's decision to exercise the veto power over the amendment to the Commercial Act, Lee raised his voice, saying, "I am confident that if President Yoon had been here, the veto would not have been exercised." He pointed out, "The veto power is a principle exercised restrictively, such as in cases of constitutional value violations," and noted, "Until the second half of last year, the Ministry of Justice's position was that it would be difficult to exercise veto power if the amendment to the Commercial Act passed."
He also criticized the business community's strong opposition not only to the amendment to the Commercial Act but also to the more moderate Capital Market Act, openly criticizing SK Group Chairman Chey Tae-won's recent remark questioning whether the Commercial Act should be amended in an era of 'super uncertainty.' Lee said, "There is some merit to that statement, but if there is to be genuine resonance, have they ever sincerely listened to the market shock and shareholders' concerns from the past SK Innovation merger issue?" He mentioned that SK Group will also need restructuring in the future and pointed out, "Given that the business community opposes both the Capital Market Act and the amendment to the Commercial Act, the market cannot guarantee that a second LG Energy Solution incident will not occur."
The LG Energy Solution incident refers to the past case when LG Chem spun off its battery division and listed it, causing significant losses to existing LG Chem shareholders. The recent surge of market suspicion during Hanwha Aerospace's rights offering is also seen as an extension of these concerns, which, according to Lee, indicates that even the core functions of the capital market have lost trust.
He also expressed concern over excessive political strife surrounding the legal amendments. Lee urged the opposition Democratic Party of Korea, saying, "Rather than passing the amendment to the Commercial Act again as is, please wait for the Capital Market Act to pass the National Assembly's Political Affairs Committee and move to the Legislation and Judiciary Committee." He added, "The business community might find excuses not to amend even the Capital Market Act," and requested, "For the amendment to the Commercial Act, it is necessary to show the art of restraint by limiting the scope to large listed companies first through enforcement ordinances so that the law can be implemented without exercising veto power."
"Short Selling Must Unconditionally Exist... Investigation of Sambu Construction to Be Completed This Month"
Regarding the stock market fluctuations following the resumption of short selling on the 31st of last month, he dismissed concerns, saying, "It is true that some stocks experienced adjustments, but this should be viewed globally. It appears to be an adjustment due to the impact of reciprocal tariffs (in the U.S.)." He emphasized, "Short selling provides liquidity and is a system that must unconditionally exist." He reaffirmed that the investigation into Sambu Construction "will be completed within this month." When asked about any investigation results related to First Lady Kim Keon-hee, he gave a standard response, saying, "We are trying to review everything that can be seen according to procedures."
Even if his resignation is not accepted, Lee's term ends on June 5. He said, "I have already booked a flight to Gili Islands, where the 'Youn's Kitchen' was filmed, with my son on the night of the 5th." When asked about his future plans, including the possibility of entering politics, he replied, "Honestly, some people encouraged me to run in the 22nd general election. After discussing with my family, we concluded it would be better not to," adding, "Having served in public office for over 25 years, I would like to broaden my horizons in the private sector."
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