[종합] Financial Supervisory Service’Public Institution’ Overcome the Crisis…Responsible for Renewal to Yoon Seok-Heon

[서울=뉴스핌] Reporter Park Mi-ri = The Financial Supervisory Service avoided designating public institutions again this year. However, as the Ministry of Strategy and Finance pointed out a recent case of inadequate supervision, the situation is facing a heavier task than before. Some point out that Seok-Heon Yoon, who has led the FSS for three years, is not free from responsibility.

The Ministry of Strategy and Finance’s Public Institution Steering Committee announced on the 29th that it had reserved the designation of public institutions by the Financial Supervisory Service. The Ministry of Finance said, “We have decided to defer the designation of the Financial Supervisory Service, but impose stricter conditions in consideration of the recent cases of poor supervision and independence in the execution of financial supervision.”

Accordingly, the Financial Supervisory Service should increase the weight of the metric indicators from 30% to 40% starting this year, and recover the incentives when fraudulent activity is confirmed. In addition, annual customer satisfaction surveys should be conducted, and the results should be reflected in the management evaluation, and the organization should also strive to improve organizational operation efficiency, such as further reduction of upper ranks and overhaul of overseas offices.

[서울=뉴스핌] Reporter Yoon Chang-bin = Seoul Yeouido Financial Supervisory Service 2020.05.11 [email protected]

There have been many observations in the financial sector that the financial supervisory service is likely to be reappointed to a public institution in 10 years due to the subsequent private equity crisis. Last year, the Financial Supervisory Service received criticism of allegations that former and current employees were involved in the private equity crisis such as Lime and Optimus, and responsibilities for the lack of supervision. Earlier, the Ministry of Information and Transportation also sent an opinion to the Financial Services Commission that it would “designate the Financial Supervisory Service as a quasi-governmental institution” before opening the Public Transportation Commission. Nevertheless, the Financial Supervisory Service also took a sigh while avoiding the designation of public institutions.

However, there are also voices that the FSS Commissioner Yoon Seok-heon, the head of the Financial Supervisory Service, is not free from responsibility because the task that the Financial Supervisory Service received in lieu of a public institution reservation was Han Ah-reum. The Ministry of Knowledge Economy also pointed out that “we took into account the recent cases of inadequate supervision” when making this decision. Director Yoon has been leading the Financial Supervisory Service since May 2018. This is the period of a series of large-scale private equity events such as Lime and Optimus.

In the case of Lime, whose redemption began in the second half of 2019, it was pointed out that the financial sector caused damage to investors due to a late request by the FSS to investigate the prosecution. The size of the Lime Fund, which was suspended from redemption, has increased from 620 billion won in October 2019 to 1.6 trillion won in three months. In the case of Optimus, it was criticized for the fact that the Financial Supervisory Service belatedly noticed the accounts receivable from public institutions, which were ghost bonds, after three years of sale.

The Financial Supervisory Service related to the private equity crisis is also unfair. The easing of regulations following the Financial Services Commission’s “private equity revitalization” made it easier to establish and invest in a private equity manager than before, but the Financial Supervisory Service does not have the authority to supervise it. This is the background that Director Yoon said at the National Assembly last year, “The FSS’s knives (manpower and tools) are not so sharp,” and “there are many limitations in responding and improving as quickly as the people want.”

However, some pointed out that the FSS was not quick to respond while the incidents of large-scale private equity funds such as DLF, Lime, and Optimus occurred. Lime’s late prosecutor’s request and Optimus’ late prosecution were pointed out as problems. An official from the financial sector said, “Although the designation of a public institution was avoided, inadequate supervision was pointed out in the private equity crisis,” he said. “It cannot be said that Director Yoon, the chief officer, is not responsible.”

Meanwhile, the Financial Supervisory Service, which was launched in 1999 as a non-capital special purpose corporation, was designated as a public institution in 2007. With the enforcement of the Act on the Operation of Public Institutions, the logic that the Financial Supervisory Service should be designated as a public institution was applied because it also performs public affairs. However, two years later, in 2009, the FSS was released from public institutions. To ensure independence.

The starting point of the Financial Supervisory Service’s “redesignation of public institutions” was covered by employment corruption in 2017. From 2018, a conditional suspension of public institutions under the Financial Supervisory Service by the Ministry of Information and Transportation continued. In 2018, ▲ eradication of employment corruption ▲ implementation of management disclosures at the level of public institutions ▲ strict management evaluation, and in 2019 ▲ reduction of the rate of level 3 or higher from 43% to 35% within 5 years was a condition.

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