Noise over the Commercial Act Amendment under Acting Leadership
Financial Services Commission Emphasizes Strong Leadership
Rising Uncertainty... Maximum Efforts for Financial Market Stability
Chairman Expresses Personal Views on Financial Authorities' Reorganization
Embargo until May 7, 14:00 Kim Byunghwan, Chairman of the Financial Services Commission, is speaking at the regular meeting with the Financial Services Commission press corps held at the Government Seoul Office in Jongno-gu, Seoul on May 7, 2025. Photo by Jo Yongjun
Kim Byunghwan, Chairman of the Financial Services Commission, commented on the clash with Lee Bokhyun, Governor of the Financial Supervisory Service, over the amendment to the Commercial Act, saying, "There was a lack of leadership in the relationship between the heads of the institutions."
At the monthly press briefing on May 7, Chairman Kim was asked, "What do you think about the criticism that the Governor of the Financial Supervisory Service escalated the issue by staking his position on the amendment to the Commercial Act?" He responded, "With many ministries and agencies currently operating under acting leadership, I strongly felt, 'Will the financial authorities be next?'" He admitted that he was uncomfortable with the comments made by the Governor at the time.
He added, "If it seemed that I escalated the issue in my response, I will accept that as a lack of leadership on my part as the head of an institution, and in the relationship between the heads of the institutions."
The conflict between the two began in March when the Democratic Party of Korea passed the amendment to the Commercial Act in the National Assembly. When Han Ducksoo, then Acting President and Prime Minister, expressed his intention to exercise the right to request reconsideration (veto), Governor Lee stated, "I will oppose it even if it means risking my position."
Subsequently, Governor Lee appeared on a radio program and reiterated his opposition to exercising the veto on the amendment to the Commercial Act, stating, "At this point, it is not about which law is better, but we must make a judgment based on the fact that the law has already passed." On the same day, Chairman Kim took a contrasting stance, saying, "I have repeatedly expressed the view that it would be preferable to prioritize amending the Capital Markets Act as an alternative to the Commercial Act amendment, or to discuss the two together."
In response, Governor Lee deepened the rift by sending an official letter to the Financial Services Commission expressing his view that the veto should not be exercised on the amendment to the Commercial Act. Governor Lee also made the unusual move of not attending the F4 meeting, which led to speculation about the leadership of the Financial Services Commission.
However, Chairman Kim emphasized that there are no issues in the relationship between the Financial Services Commission and the Financial Supervisory Service. He said, "The relationship between the two institutions is very cooperative," and added, "I feel that the leadership of the Financial Services Commission is being exercised, and that is what I am being told."
Regarding the recent discussions within the Democratic Party of Korea about reorganizing the financial authorities, Chairman Kim said, "It is not appropriate for the Chairman of the Financial Services Commission to express an opinion," but added, "Personally, I think it is more desirable for the institutions to make adjustments to ensure smooth operations."
Amid these developments, Chairman Kim repeatedly stressed that efforts are being made to stabilize the financial markets in the current climate of increasing uncertainty. He stated, "As the presidential election approaches, uncertainty will inevitably grow, but regardless of the political schedule, our financial markets and the lives of our citizens continue every day. The Financial Services Commission is doing its utmost to provide as much stability as possible amid various uncertainties."
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