Financial Supervisory Service Governor Lee Chan-jin said on the 4th that he will enhance boards' independence, reflecting the results of a recent special inspection of financial holding companies.
At a National Policy Committee briefing on the morning of the same day, Lee said he would work to ensure that transparent chief executive officer (CEO) selection procedures and a rational performance-based compensation culture spread across the financial sector, and stated accordingly.
The Financial Supervisory Service (FSS) conducted a one-week special inspection starting on the 19th of last month of the eight major financial holding companies (KB, Shinhan, Hana, Woori, NongHyup, iM, BNK, JB Financial), reviewing their overall governance structures. Along with related agencies including the Financial Services Commission, it has also formed a joint task force (TF) to draw up measures to advance governance.
Lee went on to explain that, in line with the roadmap, the regulator will shift its supervisory paradigm to preventive financial consumer protection and build a supervisory framework that covers the entire life cycle from the design and manufacture of financial products to sales and post-sale management.
Lee also said that at the start of the year, the watchdog expanded its market surveillance unit and a joint response team, and that it will push to upgrade the market surveillance system so it can detect not only individual stocks but also suspected schemes linked across multiple stocks.
He added that, in consultation with the Financial Services Commission (FSC), the Financial Supervisory Service (FSS) will establish an internal framework that connects market surveillance, planned investigations, and compulsory probes to maximize the speed and efficiency of detecting unfair transactions, and will ensure the market firmly recognizes that stock manipulation "ends in ruin."
On IT security, Lee said the regulator will establish a preventive supervisory framework to create a digital environment where people can conduct transactions with confidence.
Regarding the shift to productive finance, Lee said the regulator will actively support revitalizing the venture capital ecosystem so it does not amount to "venture capital investment in name only," by settling the business development company (BDC) system and expanding the designation of securities companies.
In addition, he announced plans to pursue market stability and the advancement of industrial structure in parallel by cleaning up distressed business sites to guide a soft landing for real estate project financing (PF), and faithfully implementing the soundness improvement measures released last year.