Financial Services Commission Struggles to Contain Shock as Vice Chairman Holds Private Talks to Stabilize Organization

Dissolution and Relocation to Sejong Inevitable Next January, Morale of Young Officers Drops
Heavy Workload and Numerous Regulations at the Financial Services Commission
Pride in Expertise Shaken
Only 50 to Remain in Seoul... Growing Anxiet

Financial Services Commission inside the Government Seoul Building in Jongno-gu, Seoul on the 7th. Photo by Yonhap News

"The atmosphere is not good."

"Right now, the Financial Services Commission is experiencing a 'mental breakdown.'

After the government and the ruling party announced a plan to reorganize the financial authorities on the 7th, the internal mood at the Financial Services Commission has been one of shock. While department heads who previously experienced the separation from the Ministry of Finance and Economy to the Financial Services Commission are trying to remain composed, officers who joined the commission after the 50th class are visibly unsettled.

According to financial authorities on September 9, Kwon Daeyoung, Vice Chairman of the Financial Services Commission, convened bureau and division heads immediately after the announcement to share information and hold a meeting. Since then, he has continued to communicate internally through various channels to stabilize the organization.

The government and the ruling party have decided to restructure financial policy and supervisory functions into four institutions: the Ministry of Finance and Economy, the Financial Supervisory Commission, the Financial Supervisory Service, and the Financial Consumer Protection Agency. As a result, the Financial Services Commission will be effectively dissolved as of January 2 next year, with its functions absorbed by the Ministry of Finance and Economy and the Financial Supervisory Commission. At most, only about 50 officials from the commission will remain in Seoul, while the rest will be relocated to the Sejong Government Complex.

One official from the Financial Services Commission said, "Naturally, the atmosphere is not good. We have no information about who will remain in Seoul, how we will be integrated with the Ministry of Finance and Economy, or any details of the reorganization, which is very frustrating." An official from another ministry also said, "The shock after the announcement of the reorganization is significant. Although it is not expressed externally, there is a sense of bewilderment among colleagues internally."

Collapse of Hopes for Continuation... Morale among Officers Drops Sharply

The Financial Services Commission had recently hoped that the organization would be maintained, especially after President Lee Jaemyung offered repeated praise. The secretary-general was promoted to vice chairman, and the appointment of a new chairman also raised expectations for the commission's continued existence. However, once the reorganization was confirmed, the internal mood dropped sharply. In particular, morale has declined noticeably among younger officers.

When the commission was established in 2008, some officials from the Ministry of Finance and Economy and other ministries joined together. They have since risen to become department heads. Senior officials at the commission, who have ties to the Ministry of Strategy and Finance, are cautious in their remarks, but the situation is different for the officers.

Officers who joined the commission after the 50th class of the civil service exam are financial policy officials who specifically chose the commission over the Ministry of Strategy and Finance. This is because the commission is located in Seoul and deals intensively with financial policy. As a result, there is a shared understanding among these officers that the commission is a distinct organization from the Ministry of Strategy and Finance, and above all, they take pride in being experts in financial policy.

Of the 263 officials affiliated with the commission, only 20 to 50 will remain in Seoul, while the rest will be reassigned to different ministries and relocated to the Sejong Government Complex. There is significant concern about commuting and housing, but there is also a heavy atmosphere regarding career prospects, as there is no guarantee that they will continue to focus exclusively on financial policy if reassigned to the Ministry of Strategy and Finance.

One official from the commission said, "It's difficult to even bring this up, but the outcome is completely different from what we expected, and the shock is considerable. It's also frustrating that even the details have not been shared."