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Photo courtesy of Yonhap News |
[Alpha Biz= Paul Lee] More than 1,500 staff members at South Korea’s Financial Supervisory Service (FSS) have formally opposed a proposed government restructuring plan that would separate the Financial Consumer Protection Bureau from the FSS.
According to financial industry sources on July 21, a total of 1,539 mid- and junior-level FSS employees—including team leaders, senior investigators, and working-level staff from 73 departments—submitted a written appeal to the Presidential Commission on Policy Planning. The document was titled “Appeal from Financial Supervisory Service Staff Regarding the Separation of the Consumer Protection Bureau.”
Out of 1,791 eligible non-executive employees (excluding directors and department heads), 237 were absent—indicating that nearly all present staff participated in the petition.
In the letter, FSS staff stated, “We oppose the separation of the Consumer Protection Bureau because we believe it would hinder—not enhance—genuine consumer protection.” They argued that maintaining the current integrated supervisory framework is “more effective and desirable” for advancing financial consumer rights.
They clarified that the appeal was not an act of resistance against the new administration’s financial policy direction, but a professional stance from those directly involved in supervision, inspection, and consumer protection activities.
The internal opposition follows recent discussions within the Presidential Commission on reorganizing financial regulatory agencies by establishing an independent consumer protection body without supervisory authority—a move that has stirred concerns within the FSS.
In their statement, FSS staff warned, “Separating the Consumer Protection Bureau could result in unnecessary social costs.” They further emphasized that many advanced financial jurisdictions have adopted integrated supervisory models, and any move to establish a separate financial consumer protection agency must be approached with extreme caution.
AlphaBIZ Paul Lee(hoondork1977@alphabiz.co.kr)
