"Relief for Financial Authorities' Employees as Reorganization Plan Is Halted: 'Our Protests in the Rain Were Worth It'"

Party-Government-Presidential Office Decides to Halt Financial Regulatory Reorganization Plan After Emergency Meeting on the 25th

On the 18th, members of the Financial Supervisory Service labor union shouted slogans at a rally opposing the separation of the Financial Consumer Protection Agency and the designation of the Financial Supervisory Service as a public institution, held in front of Yeouido National Assembly Station in Yeongdeungpo-gu, Seoul. Photo by Yonhap News

With the Democratic Party and the Presidential Office deciding to completely halt the reorganization plan for financial supervisory authorities, employees of the Financial Services Commission and the Financial Supervisory Service, who had been facing uncertainty about their future, are now relieved.

Han Jeongae, Policy Committee Chair of the Democratic Party, held a briefing at the National Assembly on the 25th after an emergency high-level meeting between the party, government, and Presidential Office. She announced, "The party-government-presidential office has decided not to include the separation of the policy and supervisory functions of the Financial Services Commission and the establishment of the Financial Consumer Protection Agency, which were initially intended to be handled as fast-track items, in this government reorganization."

Initially, the Democratic Party planned to process an amendment to the Government Organization Act at the plenary session that day, which included splitting the Ministry of Strategy and Finance into the Planning and Budget Office and the Ministry of Economy and Finance, and reorganizing the Financial Services Commission into the Financial Supervisory Commission. Related bills, such as the establishment of the Financial Supervisory Commission, were to be designated as fast-track items. However, as the People Power Party opposed the Government Organization Act and announced a filibuster, the party decided to withdraw the financial supervisory system reorganization for now.

Chair Han explained, "We were going to reorganize the Financial Services Commission into the Financial Supervisory Commission and transfer domestic financial affairs currently handled by the Financial Services Commission to the Ministry of Economy and Finance, but we have decided to restore the original structure. This reflects, to some extent, the objections raised by the opposition party." The party-government-presidential office also decided to halt the plan to separate the Financial Consumer Protection Agency from the Financial Supervisory Service.

This decision is understood to have brought significant relief to employees who had been anxious about their future due to the push for reorganization of the financial authorities.

Under the initial reorganization plan, more than half of the Financial Services Commission’s employees would have had to relocate to Sejong City, and Financial Supervisory Service employees were also concerned about their positions due to the organizational split. In particular, Financial Supervisory Service employees strongly opposed the separation of the Financial Consumer Protection Agency, arguing that it would actually harm financial consumers, and continued to hold large-scale rallies outside. On the previous day, the 24th, about 1,200 Financial Supervisory Service employees gathered in front of the National Assembly, protesting against the reorganization late into the evening despite heavy rain.

An official from the Financial Supervisory Service stated, "Employees went through a lot after the party-government-presidential office announced the reorganization plan," and added, "There is a very positive atmosphere internally regarding this decision." The Financial Services Commission also reported that there had been considerable unrest among younger employees, but that the decision has been widely welcomed.

It is also expected that discussions on re-designating the Financial Supervisory Service as a public institution will be halted. Chair Han said, "Discussions on re-designating the Financial Supervisory Service as a public institution have returned to square one," adding, "Any further discussions will proceed through internal party consultations."