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Financial experts avoid public enterprise chief positions
By Park Jae-hyuk
State-run financial institutions are facing difficulties finding new leaders, as private sector experts and government officials are hesitant to step in ahead of the upcoming presidential election, according to industry sources, Tuesday.
"It seems that former and incumbent bureaucrats are trying to avoid leadership positions at state-run institutions, over expectations they could be replaced as soon as a new president takes office," one of the sources said.
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| Korea Deposit Insurance Corp. headquarters in Seoul / Korea Times file |
The state deposit insurer finished interviewing four candidates on Sept. 9, but it has yet to recommend one of them to the Financial Services Commission (FSC). The FSC head is supposed to request the appointment of the finalist to the President, who has the right to make the final decision.
The delay has been attributed to the presidential election next March, given that the incumbent CEO's appointment had also been delayed for several months, due to local elections in June 2018. At this moment, former FSC Secretary General Kim Tae-hyun is being floated as the strongest candidate, along with former KDIC Executive Vice President Kim Kwang-nam.
The Credit Information Companies Association (CICA) is also facing uncertainties over its leadership, as former FSC Secretary General Lim Seung-tae decided not to make a bid for the CICA chair position, following a report that he had worked as an economic adviser for former Prosecutor General Yoon Seok-youl, the frontrunner among presidential hopefuls of the conservative main opposition People Power Party. Although Lim denied the report, concerns have lingered over his political neutrality.
Amidst this situation, CICA Chairman Kim Keun-soo will likely have to continue leading the association for a while, even after the end of his term on Oct. 1. The CICA plans to hold a board of directors' meeting soon to discuss procedures to appoint a new chief. Former KDIC CEO Kwak Bum-gook has been mentioned as the strongest candidate for the position.
The appointment of the Financial Security Institute (FSI) president has also remained sluggish, despite the expiration of FSI President Kim Young-gi's term in April. This situation has been regarded as a consequence of the delayed appointment of Financial Supervisory Service (FSS) Governor Jeong Eun-bo.
The FSS had faced a leadership vacuum for three months, as former and incumbent government officials remained reluctant to take leadership positions in the watchdog organization so as to avoid the negative impact of being in the position during the last months of the current presidential administration.
Given that the deputy governors of the FSS have tended to lead the FSI, FSI presidential appointments usually take place after a large-scale reshuffle of the FSS's executives.
However, the FSS governor has yet to replace executives. He seems to be looking to carry out the restructuring after the National Assembly audit in October. However, the appointment of the first senior deputy governor will likely be done later this week, according to sources.
Including FSS Senior Deputy Governor Choi Seong-il, several former FSS officials have been mentioned as candidates for the new FSI president.
Korea Inclusive Finance Agency (KINFA) CEO Lee Kye-moon's term will also end Oct. 4, but he is expected to maintain his post for a while, as the deadline for registering as a CEO candidate is Sept. 30. The The KINFA CEO is appointed by the FSC chairman, among multiple candidates recommended by the agency's executive recommendation committee.
There is currently speculation that Lee may serve another term, considering that there have been no other candidates mentioned to succeed him. It has become more possible for KINFA's chief to serve another term, after Korea Credit Guarantee Fund CEO Yoon Dae-hee was reappointed in June.
Some public financial institutions are facing difficulties in filling non-chief executive seat vacancies.
The FSS has been unable to hire a new auditor for six months, after former auditor Kim Woo-chan left the watchdog organization in March. Board of Audit and Inspection First Deputy Secretary General Chun Kwang-choon was once mentioned as the strongest candidate, but he is now expected to go to KDB Capital.
The Korea Growth Investment Corp.'s second investment division also lacks a chief. Although former senior presidential secretary for civil affairs Hwang Hyun-sun was nominated to lead the division, he stepped down eventually after facing severe criticism for his lack of experience in fund management.
