The Financial Supervisory Service was excluded from designation as a public institution. Instead, it was decided to promote intensive organizational efficiency.
On the 29th, the Ministry of Strategy and Finance held the Public Institution Steering Committee (Kongwoon Committee) presided over by Second Vice Minister Ahn Il-hwan and deliberated and resolved the ‘2021 Public Institution Designation Proposal.’ Twelve institutions, including the Institute of Construction Technology Education, the Institute of Architectural Space, the National Maritime Science Museum, and the Korea Employment and Labor Education Institute, were designated as other public institutions, and the Public Finance Agency was promoted to a quasi-governmental institution.
The need to designate a public institution for the Financial Supervisory Service was also discussed at this time, but it did not lead to the designation. An official from the KFTC explained, “This is because, as a result of evaluating the status of implementation of the matters requested by the Financial Supervisory Service under the condition of the reservation of the designation of public institutions, it is generally evaluated as being in normal implementation.”
Rather than withholding the designation of public institutions, it was decided to further strengthen the conditions for implementation. It is planning to strengthen supervision by raising the proportion of quantitative evaluation related to FSS activity evaluation from 30% to 40%. It also contained a rule that if an evaluation result was found to be cheating, the incentive was returned. The survey on customer satisfaction with the Financial Supervisory Service, which is conducted irregularly by selecting some customers, is also conducted annually at the level of public institutions. In addition, the company decided to promote intensive organizational efficiency, such as reducing the number of higher ranks and overseas offices.
The FSS has been excluded from public institutions directly controlled by the government due to the need for independent supervision of private financial companies. In accordance with the Act on the establishment of the Financial Services Commission, the Financial Supervisory Service is entrusted with business from the Financial Services Commission. But last year, insolvency supervisory responsibilities were raised in relation to the Lime and Optimus private equity crisis. The issue of the FSS’s designation as a public institution has emerged as an issue of the KFTC as some of the employees have criticized a private financial company that is being supervised.
On this day, Gongwoon Committee lifted the Korea Smart Grid Project Group and Korea Construction Management Corporation from public institutions through the transfer of functions and consolidation of institutions. Accordingly, a total of 350 institutions, 10 more than last year, have been confirmed as targets for public institution management.
Reporter Noh Gyeong-mok [email protected]
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