Lee Bok-hyun departs... Who will become the head of financial authorities in the Lee Jae-myung administration?

The Key Issue: Restructuring Government Financial Authorities

Candidates Mentioned: Do Gyu-sang, Son Byung-doo, Kim Yong-beom, etc.

As President Lee Jae-myung, who began his term on the 4th, pledged a reorganization of the economic ministries during his presidential campaign, it appears that the structure of government financial authorities will also undergo changes under the new administration. Accordingly, there is growing focus within and outside the civil service on appointments to the heads of the Financial Services Commission and the Financial Supervisory Service.

Candidates for the new chairman of the Financial Services Commission: Do Gyu-sang, Kim Tae-hyun, Kim Yong-beom, Son Byung-doo, and others

On the 5th, within and outside the government, speculation emerged about the successors to Lee Bok-hyun, who retired after finishing his three-year term as Governor of the Financial Supervisory Service, and Kim Byung-hwan, who became Chairperson of the Financial Services Commission last July.

Regarding Chairperson Kim Byung-hwan, even though about two years remain in his term, there is speculation that a replacement is likely as a new administration has started.

Possible candidates for the next chairperson of the Financial Services Commission include Do Gyu-sang, the head of Samjong KPMG Economic Research Institute (former vice chairman of the Financial Services Commission), Kim Tae-hyun, president of the National Pension Service, Son Byung-doo, CEO of Toss Insight (former chairman of the Korea Exchange), and Kim Yong-beom, CEO of Hashed Open Research (former first vice minister of the Ministry of Economy and Finance).

Director Do Gyu-sang served in key roles during the Moon Jae-in administration, including as presidential secretary for economic policy at Cheong Wa Dae and as vice chairman of the Financial Services Commission. In April this year, he joined "Growth and Integration," which worked alongside the Democratic Research Institute as a policy think tank for then-candidate Lee Jae-myung.

CEO Son Byung-doo previously served as vice chairman of the Financial Services Commission, and CEO Kim Yong-beom served as both vice chairman of the Financial Services Commission and first vice minister in the Ministry of Economy and Finance. Ahead of the presidential election, Kim Yong-beom reportedly had a one-on-one meeting with President Lee, and he is being mentioned as a candidate not only for chairman of the Financial Services Commission but also for Deputy Prime Minister for Economic Affairs.

Among those who are not former government officials, Hong Sung-kook, a top official in the Democratic Party of Korea, is also being considered. Hong, a former analyst and president of Daewoo Securities, is regarded as a leading expert on finance and economics within the Democratic Party.

For the post of vice chairman (deputy minister) of the Financial Services Commission, currently acting vice chairman Kwon Dae-young and Jung Wan-kyu, president of the Credit Finance Association, are mentioned.

Candidates for head of the Financial Supervisory Service: Kim Byung-wook, Kim Eun-kyung, Won Seung-yeon, and others

In the case of the Financial Supervisory Service, Lee Bok-hyun's three-year term as governor ended on this day. If the current organizational structure is maintained, Kim Byung-wook, former lawmaker and candidate for the position of Senior Secretary for Political Affairs, is being mentioned both inside and outside the authorities as a contender for the FSS head. He is also a member of the "Group of Seven," the core group that has assisted President Lee since his first presidential run in 2017.

Professor Kim Eun-kyung of the Law School at Hankuk University of Foreign Studies was also mentioned early as a candidate. During the Moon Jae-in administration, Professor Kim served as the first female chief of the Financial Consumer Protection Bureau at the FSS and led the Democratic Party's Innovation Committee in 2023.

Since President Lee pledged to strengthen the financial consumer protection system and greatly enhance the independence and functions of financial consumer protection organizations, there is a high possibility that Professor Kim, who has expertise in this field, may be appointed.

Additionally, Won Seung-yeon, professor of business administration at Myongji University and former deputy governor of the FSS for capital markets and accounting, is being named as a candidate.

The financial sector expects that appointments of the heads of the Financial Services Commission and the Financial Supervisory Service will be determined in line with the major direction of organizational restructuring.

According to the Democratic Party’s previously announced policy platform, there is a possibility that the Ministry of Economy and Finance will be split into the Ministry of Finance and Economy (the previous MoFE) and the Ministry of Planning and Budget. In this case, the functions of the Financial Services Commission would have to be divided. It remains to be seen where and to what extent existing functions will be transferred.

A scenario is also being discussed in which the Financial Services Commission’s overall policy role is transferred to the MoFE, while a new "Financial Supervisory Commission" (FSC) would be established to oversee prudence, legislation related to financial supervision, and the establishment, merger, transformation, and licensing of financial institutions.

Under the FSC, a Financial Soundness Bureau and a Financial Market Supervisory Service would be created, and plans are being considered to expand and reorganize the current Financial Consumer Protection Bureau.

Shin Min-kyung, Hankyung.com reporter radio@hankyung.com