New fss head expected to root out irregularities in financial industry data recovery best buy

As former veteran civic activist kim ki-sik takes over as financial supervisory service (FSS) chief on monday, the financial industry is expected to face major reforms.

Kim’s appointment completes the troika of hard-line reformists in moon jae-in’s administration, along with fair trade commission (FTC) chairman kim sang-jo and cheong wa dae policy chief jang ha-sung.

The troika served at the people’s solidarity for participatory democracy, the country’s leading NGO, which has led a campaign to reform korea’s conglomerate-oriented economy.

Most of all, he has been negative about conglomerates owning financial companies which he believes is hampering the development of korea’s financial industry.Integrated supervision

Under kim’s leadership, the FSS is likely to strengthen "integrated supervision on financial groups," which was introduced to block conglomerates from using their financial subsidiaries as their coffers.


Such practices used to cause trouble for the financial subsidiaries when they failed to get back loans from non-financial subsidiaries, damaging customers and shareholders.

Under the integrated supervision, the FSS will look into details such as the financial subsidiaries’ total exposure to group subsidiaries and the ratio of internal transactions.

A total of 97 financial companies under chaebol groups _ including samsung, hanwha, hyundai motor, DB and lotte, as well as kyobo life insurance and mirae asset _ will be subject to the integrated supervision.Integrated supervision

Kim’s relations with the country’s top conglomerate samsung have not been smooth. In a 2015 parliamentary audit, he criticized the merger between samsung C&T and cheil industries, which drew a backlash from shareholders because it was aimed at helping the transfer of managerial control within the owner family.

Back then, samsung group sold 670 billion won worth treasury stocks of samsung C&T to KCC, a friendly force. Treasury stocks do not have voting rights, but those who purchase the stocks get voting rights.

By increasing the number of supportive votes, samsung was able to get approval for the merger. Kim had proposed a bill restricting conglomerates’ handling of treasury stocks, but it failed to pass the national assembly.Financial subsidiaries

He also proposed a revision bill for the insurance business act, which he said was favoring samsung life insurance so it would complete the samsung group’s holding structure.

The top conglomerate made other headlines recently when the FSS found that samsung group chairman lee kun-hee was holding 6.2 billion won in 27 borrowed-name accounts when the real-name system was introduced in financial transactions.

He has been negative about high fees and interest rates that financial companies levy on customers. While serving as lawmaker, he pressured credit card companies to cut the fees they charged small merchants.

He also claimed that money-lending businesses should be restricted in TV advertisements, and was also negative about complicated insurance products being sold through home shopping channels.Integrated supervision

In corporate restructuring, kim has stressed "sticking to principles." he has said the corporate restructuring should be based on the market and the law, opposing government-led corporate restructuring prevalent in the country.

As former veteran civic activist kim ki-sik takes over as financial supervisory service (FSS) chief on monday, the financial industry is expected to face major reforms.

Kim’s appointment completes the troika of hard-line reformists in moon jae-in’s administration, along with fair trade commission (FTC) chairman kim sang-jo and cheong wa dae policy chief jang ha-sung.

The troika served at the people’s solidarity for participatory democracy, the country’s leading NGO, which has led a campaign to reform korea’s conglomerate-oriented economy.Integrated supervision

Most of all, he has been negative about conglomerates owning financial companies which he believes is hampering the development of korea’s financial industry.

Under kim’s leadership, the FSS is likely to strengthen "integrated supervision on financial groups," which was introduced to block conglomerates from using their financial subsidiaries as their coffers.

Such practices used to cause trouble for the financial subsidiaries when they failed to get back loans from non-financial subsidiaries, damaging customers and shareholders.

Under the integrated supervision, the FSS will look into details such as the financial subsidiaries’ total exposure to group subsidiaries and the ratio of internal transactions.Corporate restructuring

A total of 97 financial companies under chaebol groups _ including samsung, hanwha, hyundai motor, DB and lotte, as well as kyobo life insurance and mirae asset _ will be subject to the integrated supervision.

Kim’s relations with the country’s top conglomerate samsung have not been smooth. In a 2015 parliamentary audit, he criticized the merger between samsung C&T and cheil industries, which drew a backlash from shareholders because it was aimed at helping the transfer of managerial control within the owner family.

Back then, samsung group sold 670 billion won worth treasury stocks of samsung C&T to KCC, a friendly force. Treasury stocks do not have voting rights, but those who purchase the stocks get voting rights.Financial subsidiaries

By increasing the number of supportive votes, samsung was able to get approval for the merger. Kim had proposed a bill restricting conglomerates’ handling of treasury stocks, but it failed to pass the national assembly.

He also proposed a revision bill for the insurance business act, which he said was favoring samsung life insurance so it would complete the samsung group’s holding structure.

The top conglomerate made other headlines recently when the FSS found that samsung group chairman lee kun-hee was holding 6.2 billion won in 27 borrowed-name accounts when the real-name system was introduced in financial transactions.

He has been negative about high fees and interest rates that financial companies levy on customers.Corporate restructuring while serving as lawmaker, he pressured credit card companies to cut the fees they charged small merchants.

He also claimed that money-lending businesses should be restricted in TV advertisements, and was also negative about complicated insurance products being sold through home shopping channels.

In corporate restructuring, kim has stressed "sticking to principles." he has said the corporate restructuring should be based on the market and the law, opposing government-led corporate restructuring prevalent in the country.

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