Rumors of Separating the Financial Consumer Protection Bureau and Launching a New Agency
Employees Hope Governor Will Deliver a Message of Opposition
Rumors have been circulating that the government’s organizational restructuring plan includes separating the Financial Consumer Protection Bureau and establishing it as an independent institution called the Financial Consumer Protection Agency. This has caused considerable unrest within the Financial Supervisory Service. Amid concerns over personnel transfers and overlapping work resulting from the reorganization, many employees are hoping that Governor Lee Chanjin, a close aide to President Lee Jaemyung, will voice opposition to the plan to the presidential office.
Lee Chanjin, Governor of the Financial Supervisory Service, is delivering opening remarks at the "Financial Supervisory Service Governor-Bank Presidents Meeting" held at the Bankers' Hall in Jung-gu, Seoul on August 28, 2025. Photo by Kang Jinhyung
According to financial supervisory authorities and the financial sector on September 3, there are reports within political circles that an amendment to the Government Organization Act is being pursued with the aim of launching the Financial Consumer Protection Agency (FCPA) in January next year. It is also said that final adjustments are underway regarding whether the FCPA will be granted investigative authority. Anxiety among Financial Supervisory Service employees has intensified further as the possibility has been raised that the revised Government Organization Act, which includes restructuring of economic ministries, could be handled at the National Assembly plenary session on September 25.
Within the Financial Supervisory Service, personnel issues are a particular concern. Of the approximately 2,000 employees at the Financial Supervisory Service, about 400, excluding those on permanent contracts, currently belong to the Financial Consumer Protection Bureau. However, with the establishment of the FCPA, the organization could grow in size and more employees could be subject to reassignment, leading to heightened anxiety among staff. The Financial Consumer Protection Bureau is already regarded as an unpopular department, as its staff often face complaints from the public during dispute mediation processes. If the Financial Services Commission is reorganized, a new Financial Supervisory Commission is established, and the Financial Supervisory Service undergoes restructuring, some personnel transfers will be unavoidable.
A representative of the Financial Supervisory Service labor union stated, "If unpopular work such as dispute mediation is greatly expanded, internal backlash will be inevitable."
There are also significant doubts about organizational efficiency. Employees of the Financial Supervisory Service point out that if the FCPA is launched, overlapping work with the supervision and inspection departments will be unavoidable, and negative side effects such as organizational self-interest and increased regulatory costs will only worsen. Many are concerned that this could lead to even greater confusion. This means that Financial Supervisory Service employees do not agree with the political argument that, if the FCPA is established, it will not only handle limited tasks such as dispute mediation, as the current bureau does, but will also be able to implement proactive financial consumer protection measures and maximize supervisory efficiency.
Amid these concerns, attention is naturally turning to Governor Lee Chanjin. While there have been media reports that he recently expressed the view that separating the bureau is not appropriate for strengthening consumer protection, he has not made any official statements. Governor Lee has remained tight-lipped. When Asia Economy asked him about his position on the separation and whether he had conveyed his opinion to the presidential office, he did not respond.
The labor union and Financial Supervisory Service employees are closely monitoring the situation. As the reorganization plan has not yet been finalized, it is reported that they have not drawn up or shared any specific response plans, such as issuing a statement.
A Financial Supervisory Service official said, "Right now, everyone is looking to the governor," and added, "Many employees hope that the governor will communicate to the presidential office and political circles the likelihood of negative side effects, such as overlapping work among members, and increased regulatory costs due to the rise in supervisory and policy organizations, if the bureau is separated."
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