Personnel Changes at the Financial Supervisory Service (FSS)
The Financial Supervisory Service (FSS) has experienced a significant shift in its leadership structure following a series of personnel changes. Governor Lee Chan-jin, who took office in August, initiated a major reshuffle by requesting resignations from all executives in September. However, this decision was later reversed, leading to internal tensions and speculation about the future direction of the organization.
Currently, excluding the governor and vacant positions, the FSS has 11 serving executives. Governor Lee, who assumed his role in August, asked all of them to submit resignations a month later. These executives were appointed by former Governor Lee Bok-hyun, a close associate of former President Yoon Suk-yeol. This led to widespread speculation that all positions might be replaced. However, Governor Lee reportedly indicated at an executive meeting on the 29th of last month that he would not accept resignations from executives who have served less than two years. This suggests that he intends to reaffirm confidence in many of those appointed by Lee Bok-hyun.
Internal Dissatisfaction
Internal dissatisfaction has since erupted. Employees had hoped that the governor would reverse the aggressive personnel changes made under Lee Bok-hyun, but the situation appears to be worsening. One employee even posted on the FSS staff bulletin board, “If the executives remain unchanged, it will harm organizational development, so we should go on strike.” This sentiment highlights the growing frustration among staff members who feel that the current leadership is not addressing their concerns effectively.
Former Governor Lee Bok-hyun, after taking office, reshuffled department heads annually. He changed the rules to conduct personnel changes twice a year and dismissed 76 department heads in three regular reshuffles after his June 2022 appointment. Even immediately after the December 2023 emergency measures, he altered or dismissed 74 out of 75 department heads. It is known that over 100 FSS department-level officials are currently without posts, lingering in back offices.
Impact of Personnel Changes
While such drastic personnel changes have positive aspects, such as resolving stagnation and weeding out incompetent managers, many department heads were reportedly ousted for speaking frankly to Lee Bok-hyun. These individuals now face difficulties due to three-year employment restrictions for retirees.
One senior FSS official remarked, “Governor Lee Chan-jin, perhaps due to his lack of experience in financial supervision, seems to rely on current executives who carefully report and advise. It still feels like the Lee Bok-hyun era.” However, some argue that guaranteeing fixed terms is appropriate. Attention is focused on Governor Lee’s final decision.
Key Points of Contention
- Resignation Requests: Governor Lee initially requested resignations from all executives, but later decided to retain many of them.
- Executive Tenure: The decision to retain executives with less than two years of service indicates a shift in leadership strategy.
- Internal Tensions: Employee dissatisfaction has grown, with some considering strikes if changes are not made.
- Past Leadership Practices: Former Governor Lee Bok-hyun implemented frequent reshuffles, leading to significant turnover in leadership roles.
- Impact on Staff: Many department heads were removed for voicing concerns, resulting in long-term career consequences.
Future Outlook
As the FSS navigates these changes, the focus remains on how Governor Lee Chan-jin will balance the need for stability with the desire for reform. The decisions made in the coming months will likely shape the future of the organization and its ability to adapt to evolving financial challenges.