Lee Eog-weon becomes first and last FSC chairman under Lee Jae Myung government

Lee Eog-weon, the new chairman of the Financial Services Commission, delivers his inaugural address at Government Complex Seoul, Monday. Yonhap

New Financial Services Commission (FSC) Chairman Lee Eog-weon officially began his duties Monday, presenting his blueprint for major financial transformation centered on “productive finance, consumer-focused finance and trustworthy finance."

President Lee Jae Myung pushed through his appointment late Friday despite objections from opposition parties. He is both the first and will be the last FSC chairman appointed by Lee, as the government and ruling Democratic Party of Korea have proposed a reorganization plan that would transfer the FSC’s financial policy functions to the Ministry of Economy and Finance and restructure the remaining body as the Financial Supervisory Committee.

If passed by the National Assembly on Sept. 25 as planned, the commission will be effectively dissolved.

Despite growing internal backlash over the plan, Lee did not address the concerns in his inaugural remarks. Instead, the new chairman emphasized the need for a financial transformation, highlighting “productive finance” as a key priority of the Lee administration.

“The focus of the country’s financial system on easy, collateral-based loans has fueled real estate concentration and household debt. We will shift funds toward productive sectors that can drive Korea’s future,” he said. “We will review regulations and supervision to ensure they do not excessively prioritize stability or encourage real estate concentration, and implement necessary reforms wherever needed.”

The chairman also pledged to promote “consumer-focused finance” to support vulnerable groups, including low-income households and small business owners.

“We will help delinquent borrowers regain economic footing through decisive and rapid debt restructuring,” he said, adding that authorities will closely monitor for unfair practices in debt management and collections.

He further underscored that maintaining financial market stability is the regulator’s top duty, emphasizing the principle of “trustworthy finance.”

Lee Eog-weon, sixth from left, the new chairman of the Financial Services Commission, applauds alongside heads of financial holding companies during their meeting at the Korea Federation of Banks building in Seoul, Monday. Yonhap

Immediately after his inauguration, the new FSC head held his first official meeting with the leaders of financial holding companies, urging them to expand investment in advanced industries and support small business owners.

The meeting was attended by KB Financial Group Chairman Yang Jong-hee, Shinhan Financial Group Chairman Jin Ok-dong, Hana Financial Group Chairman Ham Young-joo, Woori Financial Group Chairman Yim Jong-yong and NongHyup Financial Group Chairman Lee Chan-woo, among others.

Concerns have also been mounting in the financial industry over the planned reorganization of financial authorities, which would separate policy and oversight functions. In response, Lee vowed to reduce disruptions caused by overlapping supervisory responsibilities and a complex administrative structure.

“Policy must function as policy and supervision as supervision, with reforms designed to be forward-looking and to reconcile tensions between financial soundness and consumer protection,” he said.

During the meeting, the heads of financial holding companies agreed that the industry should fulfill its core role of efficient resource allocation to expand productive finance and support the nation’s economic recovery.