Following the Labor Union, General Staff Below Team Leader Level Issue Statement
Financial Consumer Protection Bureau Employees Also Oppose Both "Dual-Peak" and "Single-Peak" Models
Following the Financial Supervisory Service (FSS) labor union, 1,539 FSS employees at the team leader level and below have also voiced their opposition to the Lee Jaemyung administration's plan to separate the Financial Consumer Protection Bureau and establish a new Financial Consumer Protection Agency.
On the 21st, 1,539 employees from 73 FSS departments distributed an "Appeal from FSS Working-Level Employees Regarding the Separation of the Financial Consumer Protection Bureau."
The employees argued that establishing a new Financial Consumer Protection Agency would reduce the effectiveness of financial consumer protection and supervision.
They claimed that in the event of a large-scale financial incident, such as the Hong Kong equity-linked securities (ELS) crisis, it is more effective to resolve the issue through collaboration between the relevant supervisory and inspection departments and the Financial Consumer Protection Bureau. They warned that splitting off the new agency would sever its connection with the FSS, thereby reducing the efficiency of financial company supervision.
They also expressed concern that the expertise of the Financial Consumer Protection Bureau staff could decline. They believe that the lack of collaboration and personnel exchanges would make it difficult to gain sufficient experience in the supervisory, inspection, and investigative departments.
Additionally, they insisted that in order to smoothly mediate complaints and disputes involving various related laws?such as the Financial Consumer Protection Act, the Banking Act, the Insurance Business Act, and the Capital Markets Act?the current integrated financial supervisory agency model should be maintained.
The employees stated, "If the Financial Consumer Protection Agency is separated, the responsible agency for various complaints and disputes will become ambiguous, leading to unnecessary costs due to disputes over accountability and causing only confusion for financial consumers," adding, "This is why many advanced financial countries have adopted the integrated financial supervisory agency model."
Among the 1,539 employees who wrote the appeal, many are also members of the Financial Consumer Protection Bureau. They opposed both the "dual-peak" model, which would grant the new agency inspection authority, and the "single-peak" model, which would not grant such authority.
They acknowledged that if the new agency becomes independent, the organization could grow, potentially offering personnel and operational benefits. However, they are more concerned about decreased work efficiency and the increased likelihood of organizational conflict. They clarified that their opposition to the division is not due to dissatisfaction with specific individuals, such as Kim Eunkyung, a professor at Hankuk University of Foreign Studies Law School, who is being mentioned as a candidate for the new agency's head.
An FSS employee stated, "Even if the new agency is established and granted inspection authority, the negatives from conflicts and confusion with the current FSS supervisory and inspection bureaus would far outweigh the benefits," adding, "Regardless of who leads the agency, work efficiency will decrease and organizational disputes will become more frequent."
Previously, on July 11, FSS union chairman Jung Yooseok, vice chairman Kwak Inhwan, and other union executives also issued a statement opposing the separation of the bureau and the establishment of the new agency.
However, separate from the claims of FSS employees and the union, it is reported that the National Policy Planning Committee is strongly considering organizational restructuring as originally proposed, including the separation of the bureau and the establishment of the new agency.
If the restructuring is carried out as planned, the Financial Consumer Protection Bureau is expected to become independent as the Financial Consumer Protection Agency. It is highly likely that, through the dissolution of the Financial Services Commission, policy functions will be transferred to the Ministry of Economy and Finance, while supervisory functions will be operated under an integrated system of the Financial Supervisory Commission and the FSS.
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