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| Financial Supervisory Service (FSS) Governor Jeong Eun-bo is expected to carry out a reshuffle of FSS executives immediately before or after Chuseok holiday. Yonhap |
By Yi Whan-woo
Financial Supervisory Service (FSS) Governor Jeong Eun-bo is expected to carry out a much-awaited, massive reshuffle of FSS executives immediately before or after the Chuseok holiday, according to sources familiar with the matter, Monday.
The timing of the reshuffle has been up in the air, although it was already decided considering Jeong asked all 14 FSS executives to tender their resignations in August shortly after he took office at the FSS, which has been under criticism for the "mismanagement" of financial firms.
The sources speculate that six executives will be replaced.
They also anticipate the replacements will be aimed at bringing order to a chaotic operational environment prior to the National Assembly annual audit of the government and related organizations beginning in October.
The FSS operates under the wing of the Financial Services Commission (FSC), and is responsible for implementing policies established by the latter.
The audit of the FSC is scheduled for Oct. 6, and the FSS, Oct. 7.
"The large-scale reshuffle has been anticipated considering the new FSS chief has been determined to replace some executives regardless of their remaining term," a source said, adding "the number of targeted officials is around six."
The six include First Senior Deputy Governor Kim Kun-ik, in charge of planning and insurance, and Senior Deputy Governor Choi Seong-il, who supervises issues related to banks and non-banking financial institutions.
Both Kim and Choi were appointed for three-year terms in June 2020.
The possible replacements are seen as especially critical following an administrative court's ruling in late August against the FSS's reprimand imposed on Woori Financial Group Chairman Son Tae-seung for the "improper" selling of high-risk derivative-linked funds (DLFs) involving hedge funds.
The ruling prompted objections from representatives of the financial firms against both the FSC and FSS over a slew of penalties ― described by some as "harsh" ― imposed on company chiefs.
The objection adds to ongoing skepticism toward the financial regulators for mismanaging the hedge fund fiasco and growing calls for the FSS to shift its current policy direction implemented under Jeong's predecessor, Yoon Suk-heun.
