Lee Chan-Jin on Geonjinbeopsa-Financial Sector Collusion Allegations: "Preparing for Preliminary Investigations"

Work Report to the National Assembly's Political Affairs Committee on the 29th

Jun Hyun-Hee: "Measures to Prevent Recurrence of Improper Solicitation Involving Geonjinbeopsa Must Be Included in Financial Sector Governance Reform"

Lee Chan-Jin, Governor of the Financial Supervisory Service, stated on the 29th regarding the alleged collusion between Jeonseongbae, known as Geonjinbeopsa, and the financial sector, "It is not easy to directly identify conclusive evidence, so we are preparing to conduct additional preliminary investigations from the ground up."

Lee Eokwon, Chairman of the Financial Services Commission, is responding to lawmakers' questions at the Standing Committee on Administration meeting held at the National Assembly on the 29th. On the right is Lee Chanjin, Governor of the Financial Supervisory Service. Photo by Yonhap News

Governor Lee made these remarks during a work report to the Political Affairs Committee at the National Assembly, noting that the Financial Supervisory Service is also examining the special prosecutor's search and investigation related to personnel solicitation and collusion within the financial sector.

Representative Jun Hyun-Hee of the Democratic Party of Korea pointed out, "If there was actual personnel solicitation related to the collusion between Geonjinbeopsa and the financial sector, and if money changed hands in the process, this could constitute charges of intermediation bribery and a violation of the Political Funds Act. Even personnel solicitation alone could lead to criminal punishment under the Improper Solicitation and Graft Act."

When asked by Representative Jun whether "If the allegations of unfair lobbying and personnel solicitation tied to political connections during the appointment of financial institution CEOs are true, is this not a serious issue that could shake trust in the financial markets?" Governor Lee answered, "Yes."

In response to a further question about what measures are being taken, he stated, "It has not been possible to confirm specific facts," and added, "On January 30, we conducted an ad hoc inspection of BNK Financial Group, but at that time, it was difficult to verify anything based solely on internal company data."

Representative Jun explained, "The reason I mention the Improper Solicitation and Graft Act is that personnel solicitation can be confirmed through documents and call records, and if the solicited individual is actually appointed, there would be circumstances suggesting a considerable connection with Geonjinbeopsa."

Governor Lee replied, "We are taking note of your remarks and making preparations," in response to Representative Jun's question, "Based on these circumstances alone, shouldn't the Financial Supervisory Service be able to take action regarding the issue of declining trust in banks and the financial sector?"

Representative Jun also urged Lee Ok-Won, Chairman of the Financial Services Commission, that it is the commission's role to prevent unfair practices such as those related to the Geonjinbeopsa collusion allegations from recurring in the financial sector.

Chairman Lee said, "Last year, President Lee Jae-Myung also pointed out the 'corrupt inner circle' and directed a reform of governance structures in the financial sector. In response to Representative Jun's suggestion that measures to prevent a recurrence of lobbying scandals like Geonjinbeopsa should be included in the improvement plan, Chairman Lee responded, "Yes, I understand."

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