[Exclusive] Financial Elites Head to the Private Sector... Over 600 Leave FSC and FSS in Five Years Amid Sejong Relocation Crossroads

Office of Assemblyman Kim Jaeseop (People Power Party): 611 Employees Resigned from the FSC and FSS Over 5 Years
91 Grade 3 and 4 FSS Managers Under Employment Review in Past 5 Years... Seven Times More Than the Previous Period
FSC Sejong Reloca

Recent data reveals that over 600 employees have left the financial authorities over the past five years. Notably, the departures have included not only junior staff but also mid-level managers such as department heads and team leaders, who form the backbone of financial policy and supervision operations. Amid increasingly heavy workloads, lower compensation than the private sector, and limited promotion opportunities, incentives for staying in the organization have weakened. With the Financial Services Commission's proposed relocation to Sejong expected to be discussed at the Cabinet meeting on August 25, concerns are mounting that the "exodus to the private sector" among key personnel may accelerate further.

Policy and Supervisory 'Backbone' Also Leaving... Financial Elites Heading to the Private Sector

According to data submitted by the Financial Services Commission and the Financial Supervisory Service to the office of Kim Jaeseop, a member of the National Assembly's Political Affairs Committee, a total of 611 employees resigned from the two agencies between 2021 and 2025. Specifically, 98 people left the Financial Services Commission, while 513 resigned from the Financial Supervisory Service. The resignation rate at the Financial Supervisory Service rose from 4.4% in 2021 to 5.2% in 2022 and has remained in the 5% range for four consecutive years up to last year.

The departure of mid-level managers who support the execution of policy and supervision has been particularly notable. Among those at the Financial Services Commission who became subject to the governmental Public Official Ethics Committee's post-employment review, the number of directors rose to 10 during 2021–2025, a fivefold increase from the 2 in the previous five-year period (2016–2020). Directors are key personnel in the Financial Services Commission, playing leading roles in policy work at the department head and team leader levels. The Financial Supervisory Service also saw a sharp rise in resignations among team leader-level Grade 3 (senior) and Grade 4 (junior) personnel, who typically attain their position after about five years of service; such resignations increased from 12 in 2016–2020 to 91 in 2021–2025. The number of Grade 3 and 4 resignations, which stood at 3 in 2020, jumped to 27 last year, marking a ninefold increase in five years.

The outflow of young employees has also continued. The Financial Supervisory Service saw the number of employees with less than five years of service who resigned rise from 4 in 2021 to 10 in 2023 and 16 last year. As a result, new hires to fill the gap have also increased, with 66 new permanent employees hired in 2018, 214 in 2023, and 213 planned for 2024. Last year, 85 new employees were hired, and the agency plans to recruit 95 more this year.

Inside and outside the financial authorities, excessive workloads, lower compensation, clogged promotion pathways, and uncertain job prospects are cited as reasons for the high turnover. The Financial Services Commission was once the top choice for those who scored highest in the civil service exam for economics, thanks to its expertise in financial policymaking and the advantage of being based in Seoul. However, as promotions to director and even to department head have become increasingly delayed, organizational morale is said to be declining. The annual salary for a director at the Financial Services Commission in 2025 is 107 million won, which is less than the average for commercial bank employees (122.75 million won). Additionally, Financial Supervisory Service employees, although not technically civil servants, must comply with various regulations such as asset disclosure and post-retirement employment restrictions, and their pay has lagged behind that offered by private sector financial firms for quite some time.

With Compensation and Promotions Stagnating, Only Seoul Post Remains Attractive... Even That is Now in Question

Against this backdrop, there are rising concerns that relocation to the provinces could serve as a catalyst for the accelerated outflow of top talent. Most financial companies are concentrated in Seoul, so if the financial authorities move to a regional location, some point out that their policy and supervisory expertise, as well as market responsiveness, could be weakened. In the case of the Financial Supervisory Service, a regional move would mean more business trips to Seoul for on-site inspections of financial companies, which could sharply increase inefficiencies and costs.

A director-level official at the Financial Services Commission said, "Young staff chose this agency because they took pride in shaping financial policy and valued the advantage of being based in Seoul. If we relocate to Sejong, it's uncertain whether we can still attract top talent as before." He added, "Many staff members, especially those with dual-income families, say they would try to manage through long commutes or living as weekend couples."

The Financial Services Commission and Financial Supervisory Service hold different internal perspectives on the impending relocation. With most other ministries already relocated to Sejong, the Financial Services Commission feels it now lacks a strong justification for remaining in Seoul and the mood is one of resignation. In contrast, opposition within the Financial Supervisory Service, which is not classified as a government ministry, is mounting. In a survey conducted by the labor union of the Financial Supervisory Service on August 21 among 1,538 employees, 85.6% indicated they would consider leaving the organization if the headquarters were relocated out of Seoul. Given the high proportion of professionals such as accountants and lawyers, and the strong demand for their expertise from financial companies and law firms, the relocation could indeed lead to a wave of resignations.

A Financial Supervisory Service official said, "From the standpoint of private companies that must respond to inspections and various financial regulations, there remains strong demand for former Financial Supervisory Service staff, but the incentives to stay—such as pay and promotion—continue to decline. After last year's discussion on splitting the agency, and now with these relocation concerns, a significant number of staff are saying they will leave as soon as the opportunity arises."

Assemblyman Kim emphasized, "With core personnel already departing for the private sector, pushing ahead with regional relocation while ignoring the agency's remit and operational characteristics would only fuel further outflows. Achieving balanced national development is important, but it is also crucial to carefully weigh whether relocating these agencies is appropriate, especially if it risks undermining financial market stability and crisis response capabilities."

This content was produced with the assistance of AI translation services.