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Photo = Yonhap news |
[Alpha Biz= Paul Lee] Seoul, June 1 — Financial Supervisory Service (FSS) Governor Lee Bok-hyun is set to step down on June 5, concluding his three-year term as head of South Korea’s financial watchdog. His departure, coupled with the expected replacement of the Financial Services Commission (FSC) chairman under the new administration, is raising concerns about a leadership vacuum at the top of the nation’s financial authorities.
Appointed in June 2022, shortly after the inauguration of President Yoon Suk Yeol, Lee was the youngest-ever FSS chief and the first to come from a prosecutorial background. During his tenure, he played a high-profile role in addressing major financial issues, including the Legoland bond market crisis, the Taeyoung Construction workout, and the MBK-related controversies involving Korea Zinc and Homeplus.
Despite his proactive stance on policy communication, Lee was often criticized for overstepping his authority, sparking jurisdictional conflicts with the FSC. His outspoken views on sensitive issues — such as calling for a partial resumption of short-selling, opposing a deferral of the financial investment income tax, and suggesting the abolishment of special breach of trust laws under the Commercial Act — were seen by critics as exceeding the mandate of the FSS.
Nevertheless, Lee is credited with triggering key reforms, particularly in empowering minority shareholders and promoting corporate value enhancement. His departure, however, leaves a leadership gap at a critical time, particularly amid uncertainty around potential financial authority restructuring proposed by opposition presidential candidate Lee Jae-myung.
In his policy pledge released on May 28, the Democratic Party candidate suggested overhauling the government’s financial institutions. “There is a need to separate the budgeting function from the Ministry of Economy and Finance,” he said, adding, “The FSC’s dual role in policy and supervision should also be reviewed and streamlined.”
Lee’s final official duty will be attending the upcoming Macroeconomic and Financial Issues Meeting, known as the “F4 Meeting”, on June 5.
Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)
