FSS suffers from defending embattled chief
Financial Supervisory Service head office in Seoul / Courtesy of Financial Supervisory Service
By Jhoo Dong-chan
The Financial Supervisory Service (FSS) has been going all out to defend its head Kim Ki-sik over the past week, but this is taking a toll on its institutional reputation and credibility as Korea's financial regulator.
Kim has been in the hot seat for over allegations concerning his overseas trips while he was a lawmaker in the 19th National Assembly.
For his defense, FSS has been mobilizing a great deal of manpower and resources in responding to media reports instead of carrying out its duties as a financial overseer.
Opposition parties are also pushing Kim into a corner through a political offensive, and observers say Cheong Wa Dae will eventually have to ask for his resignation.
“The agency has never been as busy as this,” said an FSS employee.
“Not only Governor Kim but a series of financial issues have driven the FSS into the center stage of public attention. It's a critical moment.”
Financial Supervisory Service head Kim Ki-sik
The FSS has issued a press release to explain Kim's track record once every two days since the controversy came to light, and experts raise concerns over its functionality, claiming the controversy over Kim's overseas trips _ paid for by various agencies _ may paralyze its role as a financial regulator.
“The FSS is absent from major financial issues at the moment,” said an industry insider who asked not to be named. “The agency is supposed to fully engage in issues such as Samsung Securities' fat finger scandal. The controversy over Kim is, however, diverting the agency's capacities.”
The main opposition Liberty Korea Party filed complaints of bribery and abuse of authority against Kim with the Seoul Central District Prosecutor's Office, Tuesday.
“Cheong Wa Dae said earlier this month that Kim was the right person to reform the financial sector, but now it seems to be nothing but another lousy appointment,” said floor leader Rep. Kim Sung-tae. “He should have been sent to the prosecution, not the FSS. Regardless of what excuses Kim makes, prosecutors must investigate the bribery allegation.”
The Korea Taxpayers' Association has also requested the Korea Institute for International Economic Policy to disclose information about Kim's 10-day trip to the U.S. and Europe.
“Kim has to clarify mounting allegations about his business trips abroad when he was a lawmaker,” the association said in a press release.
Cheon Wa Dae is, however, still rejecting the calls to oust Kim, claiming the overseas trips were all for legitimate reasons.
“These trips intended to help related government agencies' operations abroad, as well as keep in check how budgets were used by those institutions there,” said Cheong Wa Dae spokesman Kim Eui-kyeom during a press briefing.
He acknowledged that Kim's trips as a lawmaker “fell short of people's standards and expectations.” But he noted they were “not serious enough to warrant dismissal.”