Clash of regulators

New FSS chief Kwon engages in one-upmanship with boss

By Kang Seung-woo

The nation’s top two financial regulators, the Financial Services Commission (FSC) and the Financial Supervisory Service (FSS), are notorious for their continued discord.

What seems to be the latest clash took place Monday, when they announced the financial authorities are considering establishing a bad bank for soured project financing (PF) loans.

A bad bank is a financial vehicle that takes over non-performing loans from other banks, enabling them to make a fresh start.

FSS Governor Kwon Hyouk-se was quoted saying that his organization is pushing to