FSS Union: "FCPB Should Remain Within FSS as a 'Functionally Independent Body'"

"As an Internal Body Like the Bank Supervisory Authority Under the Bank of Korea"
"Separating the FCPB Would Make Consumer Protection Difficult"

The labor union of the Financial Supervisory Service (FSS) has voiced its opposition to the proposed financial supervisory system reform that would separate the Financial Consumer Protection Bureau (FCPB) from the FSS. The union argued that the FCPB should instead be established as a "functionally independent body" within the FSS, with its own independent budget and personnel authority.

Yeouido Financial Supervisory Service Headquarters, Yeongdeungpo-gu, Seoul. Financial Supervisory Service

On August 7, the FSS union released a statement titled "Suggestions to the President Regarding the Reform of the Supervisory System," proposing a reform plan to make the FCPB an independent organization within the FSS.

The union asserted that separating the FCPB from the FSS would result in overlapping duties and avoidance of responsibility, which would ultimately weaken consumer protection functions.

The union cited the case of the Bank Supervisory Authority, which was operated as an independent body under the Bank of Korea in the past, suggesting that the FCPB should be established as a similar independent organization within the FSS.

The Bank Supervisory Authority was integrated into the FSS in 1998. It performed tasks such as bank supervision and inspection under the direction of the Monetary Policy Board. As an organization with independent authority over personnel and budgets, it also conducted personnel exchanges with the Bank of Korea when necessary.

The FSS union argued that, taking the example of the Bank Supervisory Authority, the FCPB should be retained as an organization within the FSS, while elevating the status of the FCPB Director to be equal to that of the FSS Governor and guaranteeing independent management of the bureau's budget and personnel.

In addition, the union emphasized that by significantly strengthening the supervisory and inspection authority of the FCPB, it would be possible to both secure top talent and achieve the synergy effects of an integrated supervisory body, thereby enhancing financial consumer protection.

The FSS union stated that, if the plan to separate the FCPB?currently being promoted by the National Policy Planning Committee?were implemented, the organization would not align at all with the government's policy direction of strengthening financial consumer protection, regardless of whether it is structured as a single-peak (handling only disputes and complaints) or dual-peak (with inspection authority) model.

Jung Yooseok, head of the FSS union, said, "Establishing the FCPB as a functionally independent body is the best alternative, as it allows us to enjoy the benefits of separating consumer protection functions and, at the same time, capitalize on the advantages of the integrated supervisory body that has been maintained for 27 years."