Traditional Bureaucrat from the Ministry of Economy and Finance... Drive for 'Livelihood Finance'

Lee Eok-won, Nominee for Chairman of the Financial Services Commission

Lee Jae-myung’s Financial Policy Expected to Accelerate

Served in Lee’s Presidential Campaign Think Tank

Two Consecutive FCS Chairmen from Ministry of Economy and Finance

Debt Management, Revitalization of the Capital Market, etc.

Resolving Mounting Financial Issues is a Key Task

"Policies to Wipe Away Tears of Ordinary People"

Financial 'Two-Top' Positions Filled

High Likelihood the Current Financial Structure Will Be Maintained for Now

Lee Eok-won, the former First Vice Minister of the Ministry of Economy and Finance (58, pictured), who was nominated as the first Chairman of the Financial Services Commission under the Lee Jae-myung administration, is regarded as a traditional bureaucrat specializing in macroeconomics. He was selected as the right person to lead the unsettled internal atmosphere caused by pressing financial issues such as stabilization of livelihood, household debt management, expansion of productive finance, revitalization of the capital market, and organizational reform. Within and outside the financial authorities, there is an expectation that with Lee Eok-won and the simultaneous appointment of the Financial Supervisory Service Governor, the implementation of Lee Jae-myung’s financial policies will gain momentum.

◇ Office of the President: "The Right Person to Lead Financial Policy"

On the 13th, President Lee Jae-myung appointed former Vice Minister Lee as the new nominee for Chairman of the Financial Services Commission. Chief Presidential Secretary Kang Hoon-sik described him as "a finance expert and economic bureaucrat who served as First Vice Minister of the Ministry of Economy and Finance and as an invited research fellow at the Korea Capital Market Institute," and emphasized, "Based on his solid career, he will faithfully embody the Lee Jae-myung administration’s financial philosophy through financial policies that wipe away the tears of the ordinary people and by promoting a sound capital market."

Born in 1967 in Seoul, nominee Lee graduated from Kyungshin High School and Seoul National University’s Department of Economics, and earned a Ph.D. in Economics from the University of Missouri in the United States. Entering public service in the 35th Civil Service Examination in 1991, he has held key posts such as Director-General for Economic Policy at the Ministry of Economy and Finance. After retiring from government service at the end of May 2022, he served as an invited research fellow at the Korea Capital Market Institute and is currently an invited research fellow at the Korea Institute of Finance. He was also a member of the expert group ‘Growth and Integration’ launched to discuss policy during Lee Jae-myung’s presidential campaign.

With this nomination, back-to-back Chairmen of the Financial Services Commission have hailed from the Ministry of Economy and Finance. An official from the financial authorities commented, "He was in charge of macro-finance at the Ministry of Economy and Finance and accumulated experience regarding the overall domestic and international economy, as well as earning recognition for his character within the government, which seems to be the reason for appointing another candidate from the Ministry following his predecessor." Former FCS Chairman Kim Byung-hwan also served as First Vice Minister before heading the Commission.

Lee is expected to prioritize stabilization of people’s livelihoods and revitalization of the capital market, both points of emphasis for President Lee. The Financial Services Commission has raised its presence on major policy tasks for the Lee administration, including 'debt adjustment,' 'advanced industry funds,' 'household debt management,' and 'revitalization of the capital market.' President Lee has showered high praise on the Commission. At a Chungcheong Region town hall meeting on the 4th of last month, for example, he publicly commended then-Secretary-General (now Vice Chairman) Kwon Dae-young of the Commission, calling him "the person who crafted real estate loan restriction measures" and said, "Well done." At a cabinet meeting on the 29th of last month, when then-Chairman Kim Byung-hwan proposed financial penalties for enterprises in the event of serious workplace disasters, President Lee called it an "interesting proposal" and highly valued it.

Chairman-nominee Lee is also expected to concentrate his capabilities on advancing the domestic financial industry. In a recent interview with The Korea Economic Daily, he stated, "Only with growth does the pie increase and conflicts decrease when it comes time to distribute," emphasizing that "growth is an immutable truth."

◇ Financial Supervisory Restructuring Loses Momentum

However, whether the restructuring of the financial authorities will proceed remains uncertain. The main points of the organizational reform plan reported to President Lee by the National Planning Committee are to split the current Ministry of Economy and Finance into an Office for Policy and Planning and a Ministry of Strategy and Finance, and to transfer the Financial Services Commission’s domestic financial policy functions to the Ministry of Strategy and Finance. The plan also includes the establishment of a Financial Supervisory Commission to oversee all supervisory matters and the separation of the Financial Consumer Protection Bureau from the Financial Supervisory Service.

Both inside and outside the financial authorities, the consecutive nominations of the Chairman of the Financial Services Commission and Governor of the Financial Supervisory Service are seen as likely to postpone reorganization for the time being. Some analyses suggest the Financial Services Commission is likely to persist, as numerous tasks such as those outlined in the newly announced government agenda are piling up for the Commission. The Commission is responsible for a wide range of major presidential campaign pledges, including the June 27 real estate policy, household loan management, the establishment of a bad bank, eradication of stock price manipulation, strategic advanced industry funds, and the transition to productive finance. Chief Presidential Secretary Kang Hoon-sik drew a line regarding reorganization, saying, "The government’s reorganization plan has not yet been finalized, and since the Financial Services Commission is currently active, nominating the chairman was a natural step."

Lee Eok-won, Nominee for Chairman of the Financial Services Commission:

△ Born 1967 in Seoul △ BA in Economics, Seoul National University △ Ph.D. in Economics, University of Missouri, United States △ 35th Civil Service Examination △ Director-General for Economic Policy at the Ministry of Economy and Finance △ Presidential Office Secretary for Economic Policy △ First Vice Minister, Ministry of Economy and Finance △ Distinguished Professor, Department of Economics, Seoul National University

Reporters: Park Jae-won / Shin Yeon-su wonderful@hankyung.com