Yoon administration expected to appoint heads of financial authorities soon

The signboard of Financial Services Commission (FSC) in central Seoul / Yonhap

By Anna J. Park

With the completion of the June 1st local election, the market's focus is now on when the Yoon Suk-yeol administration will carry out the delayed appointments of the heads of key financial authorities ― the Financial Services Commission (FSC) and Financial Supervisory Service (FSS).

Since the resignation of FSC chief Koh Seung-beom in early May, the top post at the financial regulator remains vacant. There have been reports that Kim Joo-hyun, chair of the Credit Finance Association, has been selected to lead the FSC. However, the appointment of a new FSC chief has yet to be announced, only increasing uncertainty in the market.

As the appointment of the country's top financial regulator is being delayed, other state-run organizations, such as the Financial Supervisory Service (FSS) and Korea Development Bank (KDB), are also seeing those positions remain vacant.

The situation is unusual when considering that the appointment of the FSC chief comes as one of the first priorities when a new administration starts. This is largely due to the fact that the FSC chairman has the right to recommend the heads of state-run banks.

With the top post at the FSC remaining empty, the FSS has also been without a head since mid-May when its governor Jeong Eun-bo tendered his resignation. There have been reports that Lee Byung-rae, vice chairman of the Korean Institute of Certified Public Accountants (KICPA), will be leading the supervisory organization under the Yoon administration. But the appointment has yet to take place.

Who will be leading the KDB is another major issue, due to the state-run bank's controversial projects, such as the unsuccessful sale of SsangYong Motor and KDB Life, as well as the bank's relocation to Busan.

“As there are many tasks that the top financial regulator should handle, the post can't remain vacant for long. The appointment is likely to come as the local election is over now,” a financial analyst said.