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Korea Exchange. (Photo: Alpha Biz) |
[Alpha Biz= Paul Lee] Korea Exchange is facing strong backlash from its labor union and civic groups in Busan after a former senior official from the Financial Supervisory Service (FSS) was reportedly slated to head its derivatives market division for the 10th consecutive time.
The Busan chapter of the Citizens’ Coalition for Economic Justice issued a statement on May 12 criticizing the planned appointment of a former FSS senior deputy governor to the position. The group argued that the exchange is directly subject to oversight and inspection by financial authorities, including the Financial Services Commission and the FSS, raising concerns over potential conflicts of interest.
“The repeated appointment of former FSS officials to executive roles at the exchange over the past nine years indicates that safeguards to prevent conflicts of interest have not functioned properly,” the group said.
According to the exchange’s labor union, former FSS senior officials have been appointed to key executive positions since 2016, including the head of the stock market division, as well as the derivatives division in 2019 and 2023. The union noted that despite the exchange’s role as a public-interest institution entrusted with government functions, it is not classified as an entity subject to post-employment screening for public officials.
The Busan civic group further criticized the practice as “structurally unfair revolving-door employment,” arguing that regulatory officials repeatedly moving into senior positions at institutions they once oversaw undermines fairness and governance.
Both the union and the civic group have called for the withdrawal of the nomination and warned of strong countermeasures if the appointment proceeds.
Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)
