Will FSS Appoint a Female Executive for the First Time in Five Years? Lee Chanjin's Year-End Personnel Overhaul in Focus

FSS Governor Lee Chanjin emphasizes the need to appoint women to executive positions
Jeong Eunjeong and Kim Eunsun among potential executive candidates
More promotions from the second open-recruitment cohort likely; attention on third-cohort appointments
Scope of executive reshuffle and personnel strategy in focus amid promotion backlog

Attention is focused on whether the Financial Supervisory Service (FSS) will appoint a woman executive for the first time in five years as it prepares for its year-end executive reshuffle. Another key question is how broadly FSS Governor Lee Chanjin will replace executives amid a persistent backlog in promotions. After prioritizing organizational stability in his first year in office, will Lee opt for gradual change in his second-year reshuffle, or broaden the scope of replacements and pursue a bold overhaul of personnel?

Lee Chanjin, Governor of the Financial Supervisory Service

According to financial authorities on November 12, the likelihood of a female bureau chief being promoted to an executive post this year is considered high, as Lee has repeatedly told FSS staff about the need to promote women to executive positions. If a woman is appointed, it will be the first such appointment in five years, since Kim Miyeong became the FSS's first internally promoted female executive in 2021, when she was appointed vice governor and head of the Financial Consumer Protection Bureau.

Potential candidates for executive positions include Jeong Eunjeong, director general of the Banking Supervision Department, and Kim Eunsun, director general of the Accounting Supervision Department. If Jeong is appointed to an executive post, she is reportedly more likely to be assigned to an area such as financial consumer protection than to the banking sector.

Along with the prospect of a woman being promoted to an executive position, the seniority group from which executives are promoted is also drawing attention. Kim Seonguk, the vice governor in charge of banking and a member of the first open-recruitment cohort, has already been promoted to vice governor, and a large number of deputy governors from the first cohort were appointed last year. This makes it likely that additional executives will be appointed from the second cohort this year. Potential candidates include Noh Yeonghu, director general of the Consumer Protection Supervision Coordination Department, and Im Gwonsoon, director general of the Consumer Harm Prevention Department.

Whether anyone from the third cohort will be appointed is also attracting attention. There is cautious hope that, to ease the promotion backlog, the FSS may make merit-based appointments that prioritize ability and performance rather than seniority or years of service.

The actual number of promotions will depend on what happens to current executives. Of the FSS's 13 executives, the senior deputy governor's term expires at the end of December, and the appointment requires consultation with the Financial Services Commission. This leaves the other 12 as direct subjects of Lee's personnel decisions. After taking office last year, Lee said he intended to guarantee executives a tenure of three years for vice governors, including their time as assistant vice governors, and two years for assistant vice governors.

Four executives have reached those tenure benchmarks: Hwang Seono, vice governor for capital markets and accounting; and Lee Jong-o, Seo Jaewan, and Lee Seungwoo, assistant vice governors overseeing digital and IT, financial investment, and disclosure and investigation, respectively. Hwang is expected to be replaced, while the scope of the reshuffle will depend on whether the other three remain in their posts, are promoted, or leave. In the financial investment division, controversy over single-stock leveraged exchange-traded funds (ETFs) is seen as a factor that could affect personnel decisions. In the digital and IT division, the likelihood of executives retaining their posts is considered higher, given the need to respond to a series of recent hacking incidents in the financial sector and ensure business continuity.

While relatively substantial personnel changes are expected, particularly in the financial investment division, there are also predictions of changes among executives in the banking division. Lee is reportedly dissatisfied with the banking division's pace of work and approach to addressing issues such as improving financial companies' corporate governance, a key banking-sector issue this year, and problems with banks' interest-rate calculation systems raised in recent parliamentary audits. Analysts say this could lead to changes in executives' assignments to strengthen oversight of banking supervision and accelerate policy implementation.

Separately, Yoon Jeongsuk, a specialist accounting review committee member who is a regular employee at the senior bureau chief level but receives executive-level treatment, is also likely to be replaced as her term expires.

People inside and outside the FSS are watching to see whether Lee will prioritize organizational stability or a personnel overhaul in this reshuffle. During the tenure of former Governor Lee Bokhyun, bold personnel moves, including the replacement of large numbers of bureau chiefs every year, led to growing fatigue within the organization. In his first year in office, Lee focused on stabilizing the organization by retaining many of the existing senior officials. However, as he enters his second year and has had time to become familiar with the organization and its work, some observers say he may now make his mark through this reshuffle.

Lee is expected to finalize his plans for executive appointments soon and begin the personnel vetting process at the Blue House.

A financial industry official said, "While the focus last year was on organizational stability, this year he will also have to take the promotion backlog into account. With the appointment of a woman executive, expanded promotion opportunities for junior cohorts, and guarantees of tenure for current executives all coming into play, Lee's personnel philosophy and vision for running the organization may become clearer through this reshuffle."

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