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Rival parties clash over potential FSC dismantling at chairman nominee hearing
Lee Eog-weon, nominee for Financial Services Commission chairman, speaks during his confirmation hearing at the National Assembly in Seoul, Tuesday. Yonhap
By Jun Ji-hye
Ruling and opposition party lawmakers sparred over the potential dismantling of the Financial Services Commission (FSC) during the confirmation hearing for chairman nominee Lee Eog-weon Tuesday.
Main opposition People Power Party (PPP) lawmakers insisted that the hearing was pointless for what they described as a “10-day chairman,” citing government and ruling party discussions on breaking up the country’s top financial regulator.
But ruling Democratic Party of Korea (DPK) lawmakers argued that the reorganization has not yet been decided and that the hearing should continue.
The opposition’s backlash came after reports that DPK lawmakers had discussed a government reorganization plan with the presidential office and related ministries on Monday. The plan reportedly includes dismantling the FSC and is expected to be put to a National Assembly vote on Sept. 25.
The presidential State Affairs Planning Committee, which set out the Lee Jae Myung administration’s five-year governance blueprint, earlier reviewed a proposal to separate the FSC’s financial policy functions from its supervisory responsibilities.
Under the plan submitted to the presidential office, the FSC’s financial policy role would be transferred to the Ministry of Economy and Finance, while its oversight duties would move to the Financial Supervisory Service (FSS), effectively dismantling the commission.
“I heard the presidential office and DPK lawmakers discussed a plan to restructure the financial supervisory framework, centered on dismantling the FSC," Rep. Kang Min-kuk of the PPP said. "Is the nominee here to act as a demolition foreman sent to tear down the FSC?”
Rep. Lee Yang-soo of the same party added, “If this hearing proceeds, the appointment process will take around 10 to 15 days. Are we really conducting this just so he can serve barely 10 days in office?”
The confirmation hearing for Lee Eog-weon, nominee for Financial Services Commission chairman, takes place at the National Assembly in Seoul, Tuesday. Yonhap
In response, DPK lawmakers said the FSC’s reorganization has yet to be finalized.
Rep. Kang Jun-hyeon acknowledged that a policy meeting between the government and the ruling party was held but clarified that it was only a discussion, not a decision. He also dismissed claims that the bill was scheduled for passage on Sept. 25.
Kang further emphasized that the plan is not about dismantling the FSC but about reallocating functions and possibly changing its name.
“No matter what form the institution takes, financial policy must maintain continuity and accountability,” Kang said. “Under current law, the FSC still exists, and its chairman holds authority over the financial market as a whole. Renaming or restructuring the body does not eliminate its accountability, so holding a confirmation hearing remains essential. When reforms are still under debate, it becomes even more crucial to examine the nominee’s guiding philosophy and vision.”
The nominee, for his part, declined to comment on the potential dismantling of the commission, stating that it is “not appropriate to take a position for or against” and that “discussing hypothetical scenarios is improper.”
Responding to PPP lawmaker Lee Yang-soo’s claim that he showed no resolve to protect the FSC, the nominee added, “If the details are disclosed and I am given a chance to share my opinion, I will provide the necessary input at the appropriate time.”
In his opening statement at the confirmation hearing, the nominee highlighted five key directions for financial policy he would pursue if confirmed — expanding funding into productive sectors, creating a fair and dynamic capital market, alleviating debt burdens and improving financial access for vulnerable populations, strengthening financial consumer protection and maintaining market stability.
Regarding digital assets, he said, “I will foster healthy industry growth by introducing additional legislative frameworks for cryptocurrencies and a regulatory system for stablecoins.”
He also pledged to encourage greater risk-capital supply by mega investment banks, pursue reforms in the stock market structure and support the implementation of the revised Commercial Act to promote a corporate governance culture focused on shareholder value.