Recently, as the authority of the Financial Supervisory Service has been strengthened, more retired executives and employees are moving to law firms. As large financial companies that respond to disciplinary actions and penalty surcharge imposed by the financial authorities have become major clients of law firms, demand for job changes among Financial Supervisory Service (FSS) employees is also increasing. Many FSS employees who go to law firms lobby the FSS, prompting voices of self-reflection inside the FSS about employees heading to law firms.
According to the financial sector on the 7th, among FSS retirees who became subject to employment screening by the Government Public Officials Ethics Committee (the committee) this month, a Head of Team-level employee who sought to move to Lee & Ko received a deferment decision.
Political appointees of the national and local governments and executives and employees of institutions related to public office are subject to employment restrictions for three years from the date of retirement. They cannot move to a place related to the work they handled while in office. The FSS is not a public institution, but it is subject to this standard.
Recently, the committee has tended to interpret the FSS's scope of work broadly and apply employment screening strictly. On the 7th, two FSS employees who sought to move to Coupang failed the screening.
The move of FSS employees to law firms has increased in step with the strengthening of the FSS's authority and standing. Reemployment of FSS employees at law firms, which was only one case in 2016, rose to 14 cases each in 2022 and 2023, during the tenure of former Governor Lee Bok-hyun. Lee, a close aide to former President Yoon Suk-yeol, expanded the FSS's standing by becoming involved across financial policy.
In 2025, when current FSS Governor Lee Chan-jin, a close aide to President Lee Jae-myung, took office, the number of executives and employees heading to law firms reached 10. Since 2021, of the 75 public officials reemployed at Kim & Chang, 23 were from the FSS, the most among all backgrounds.
Those from the FSS take on roles at law firms such as regulatory response, building litigation strategies, and designing internal controls. In this process, it is known that their main work as former officials is to grasp internal trends through current FSS employees.
Inside the FSS, discontent has been growing as complaint calls continue from former executives and employees who moved to law firms. In particular, it is said that younger employees, who are not accustomed to preferential treatment for former officials, are sensitive to these issues.
An FSS employee said, "In the past, there was also the thought that when retired seniors did well, positions would open up for those in office," adding, "These days, there are so many retirees in law firms or financial companies in charge of 'FSS government affairs' that it is hard to respond to them all." The employee added, "Among younger staff, there are also voices saying that retiree 'government affairs' work that rises to the level of obstructing duties should be banned."