FSS Composition Under Study
The government may transform the Financial Supervisory Service, which is currently part governmental and part private, into a government agency, an economic minister said Tuesday. The financial regulator's structural problems have recently become a focus of attention; in a recent illegal loan scandal, a official of the service allegedly accepted bribes.The Financial Supervisory Service was established in January 1999 by consolidating four financial regulators, some governmental, others private-the Banking Supervisory Authority, the Securities Supervisory Board, the Insurance Supervisory Board and the Non-bank Supervisory Authority.
"The financial watchdog's character is ambiguous as it is part governmental and part private," said Jeon Yun-chul, minister of planning and budget, at a press conference Tuesday. This makes it difficult for the institution to perform functions involving the supervision and examination of financial institutions, he stated.
The economic ministers have already agreed to a reorganization plan, the minister said.
In addition, the government will announce new plans for tax reform by the end of the year, the minister said. Measures under consideration include the merger and abolition of various charges imposed on companies, he added.
by Lee Kyea-yeong
with the Korea JoongAng Daily
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