Yi Whan-woo is a Korea Times journalist primarily covering finance. He writes in-depth articles on macroeconomy and financial markets and previously covered sports, politics, diplomacy and inter-Korean affairs, among others. Feel free to contact him at yistory@koreatimes.co.kr.
FSS faces possibility of becoming public entity once more under Yoon administration
The Financial Supervisory Service (FSS) flag stands alongside a Korean flag at the main gate of the FSS in Seoul in a photo taken in May 2021. Korea Times file
By Yi Whan-woo
By Yi Whan-woo
The Financial Supervisory Service (FSS) is facing the growing possibility of coming under government control again after it was listed as a public entity and then delisted during the 2000s.
Established in 1999, the FSS is categorized as a private entity, although it is directed by the Financial Services Commission (FSC).
The FSC is one of the commissions operating under the Prime Minister's Office. It is tasked with establishing regulatory policies, while the FSS implements its policies.
Whether to list or delist financial entities that are associated with the government directly or indirectly is decided by the Ministry of Economy and Finance.
The FSS was listed as a public entity in 2007 but was then delisted in 2009, in the name of ensuring its autonomy in the financial market as well as preventing bureaucrats from influence-peddling in private financial firms via the FSC.
The possible listing of the FSS as a public entity has surfaced again, as Choo Kyung-ho, the nominee for the deputy prime minister and minister of economy and finance positions, has strongly committed to doing so.
Also, as the main opposition People Power Party (PPP) lawmaker, he has been known as the most outspoken critic among legislators of the FSS being excluded from the list of public entities.
During a National Assembly audit in 2020, he said, “It is time to think again about whether it is appropriate not to designate the FSS as a public entity.”
Choo then brought up the FSS' lax oversight concerning major scandals involving the fraudulent sales of funds at investment firms Lime Asset Management and Optimus Asset Management.
“The finance ministry has been steps away from managing the FSS, but it should be able to stimulate the FSS in its personnel management and salary system by putting it on the list of public entities.”
The possible need to put the FSS back on the list was previously discussed in 2016 when it was embroiled in a hiring scandal.
A financial source said the aforementioned scandals have affected public sentiment against the FSS, adding, “Such circumstances may support Choo pushing ahead to put the FSS under government control if he is officially appointed as the finance minister.”