Alphabiz - Tighter Job Restrictions Frustrate Former Financial Supervisory Service Officials

Photo courtesy of Yonhap News

[Alpha Biz= Kim Jisun] SEOUL, May 26 — Former officials of South Korea’s Financial Supervisory Service are facing increasing difficulty securing post-retirement employment, as strict conflict-of-interest rules block job transitions and intensify internal dissatisfaction.

According to the Ministry of Personnel Management, several recently retired FSS officials were denied approval to join private-sector firms, including a case involving a move to Coupang. In another instance, a former senior executive was unable to take a leadership role at a financial institution due to similar restrictions.

Under Korea’s Public Service Ethics Act, officials are prohibited for three years from joining organizations closely related to their former duties. For the FSS, the rule applies broadly to employees ranked at Grade 4 and above—covering a significant majority of its workforce—leading to concerns that the restrictions are more stringent than those applied to comparable institutions.

The tightening of these rules dates back to reforms following the 2011 savings bank crisis. However, critics argue that the current framework is contributing to promotion bottlenecks and limiting career mobility, particularly among younger staff.

Officials warn that as the number of restricted organizations continues to grow, both promotion prospects and post-retirement opportunities are becoming increasingly constrained, fueling discontent within the agency.

Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)