New financial regulator chief vows impartiality
The new governor of the country’s top financial regulator said Monday that he will ensure a balance between the best interests of consumers and financial regulations.
“The Financial Supervisory Service (FSS) needs to take a tailored approach to the interests of the consumers of products, financial companies and relevant services. Impartiality is the core thing that can’t be yielded,” FSS Governor Kim Ki-sik said in his inauguration speech at the headquarters of the agency in Yeouido, southern Seoul. K i m replaced Choi Heung-sik, whose offer to resign after he was accused of being involved in hiring irregularities was accepted by President Moon Jae-in.
“I believe seeking balance and harmony is the only way to keep the FSS afloat,” he said. Kim was a long-time shareholder activist and former lawmaker. He was nominated last week as the new governor.
“I acknowledge criticism that the FSS has put defending the best interests of consumers as secondary, as the regulator paid more attention to the financial soundness of financial institutions. The results are that we’ve seen lots of complaints from consumers, which the FSS need to address,” the governor said.
During the speech, the governor said he will identify common market failures that could arise in financial markets and ways in which the regulator can justify regulation to correct them.
Kim identified investor and con- sumer protection, financial stability, market efficiency, fairness and the prevention of financial crimes as the major goals of financial regulation.
During his career at a non-governmental organization, the new governor was against chaebol-focused policies and backed the interests of minority shareholders.
He was also an active critic of chaebol ownership of financial firms.
Recently, the FSS has been under fire due to the regulator’s passive involvement in rooting out illegal hiring.
Some senior FSS officials were alleged to have been involved in the controversy.