Yoon Seok-heon “The current financial supervision system causes financial accidents… FSS should be independent”

Input 2020.12.23 17:03 | Revision 2020.12.23 17:03

Financial Supervisory Commissioner Yoon Seok-heon pointed out the current financial supervision system as one of the causes of the private equity crisis, and said that the Financial Supervisory Service should be independent from the Financial Services Commission. It was also said that in order to correct the’tilted playground’ between financial companies and financial consumers, it was necessary to impose a’one-sided binding force’ on the dispute settlement plan by the FSS.

Director Yoon held an online press conference that day and said, “The current financial supervisory system is unclear about the responsibility between the policy (Financial Commission) and the enforcement (Financial Supervisory Service).” Director Yoon said, “Sometimes the government creates certain risks while trying to foster the financial industry, and those risks act as a burden on consumers.” It’s not different.”

He said, “Financial industry policy and supervision should maintain mutual checks and balances with each other,” he said. “In other words, it means that the FSS should maintain its independence.”

Director Yoon explained that “budget independence is part of the supervisory system’s independence,” citing the fact that the FSS’s budget is now controlled by the Financial Services Commission. He said, “Being independent of the budget does not mean the independence of the supervisory system.” This means that both the supervisory system and the budget must be independent from the FSC in order to ensure the FSC’s independence.

Director Yoon said that it is necessary to introduce a’one-sided binding force’ that requires financial companies to unconditionally accept the results of the FSS Dispute Mediation Committee. He said, “If dispute settlement is not accepted, we have to go to lawsuit, but financial consumers are absolutely inferior to financial companies.”

Regarding the point that unilateral binding force deprives financial companies of trial opportunities, “we heard the opinion of legal scholars that the basic rights of financial companies can be restricted if some conditions are met.” There is” he said.

He said, “In relation to the minimum infringement, we know that some members of the National Assembly have considered limiting the amount of (one-sided binding force applied) to a small amount of 20 million won or less.”