Concerns over FSS leadership vacuum grow

The record-length leadership vacuum of the Financial Supervisory Service (FSS) is prompting concerns that whoever fills the post will not last long as the position remains insecure with the presidential election coming in March next year.

The financial watchdog’s chief is appointed by the President with a recommendation from the chairman of the Financial Services Commission (FSC), the country’s top financial regulatory body that oversees the FSS.

Under the single-term, fiveyear presidency, the March election means that a new president is highly likely to replace highranked government positions as well as affiliated positions held by their predecessor’s picks.

The foreseeable scenario suggests the longer it takes for President Moon Jae-in to appoint the next FSS governor, the shorter the newly appointed governor will serve.

The chance for a short-lived term is snowballing, according to industry sources, as the governorship has remained empty for the longest period of time to date with no signs of improvement, after hardline reformist Yoon Suk-heun ended his threeyear term on May 7.

The next FSS chief could carry over into another term. But in the case of Yoon, chances were slim considering he was pressed to quit after being blamed for the FSS’s lax oversight in relation to a massive mis-selling scandal involving hedge funds Lime Asset Management and Optimus Asset Management.

Yoon came under fire during his second year of office for the FSS’s lack of supervision over the troubled hedge fund operators. Related investigations are still ongoing.

“Who will dare go for a position that will apparently last for a year or even less?” a source wondered.

The source speculated the appointment will continue to be delayed, noting the Moon administration is also putting on hold selections for some ministerial posts.

The FSS governorship is equivalent to a vice minister-level post and its appointments are dealt with after higher positions are filled.

Cheong Wa Dae has kept mum so far over Yoon’s replacement.

“The prolonged delays in appointing the FSS chief may heavily affect the morale of the FSS staff,” another source said.

It said an increasing number of FSS executives are tired of the appointment delays and are worried about their future.

With its First Senior Deputy Governor Kim Keun-ik serving as acting chief, the FSS additionally faces concerns that a series of pending issues will be more difficult to resolve.