Kim Joo-hyun becomes FSC chairman, vows to stabilize markets

Financial Services Commission Chairman Kim Joo-hyun makes his inaguration speech at the government complex in Seoul on Monday. [YONHAP]

Kim Joo-hyun became chairman of the Financial Services Commission (FSC) on Monday, the first to get the job without a National Assembly hearing.

He is fourth Yoon administration Cabinet member to begin work without a grilling by legislators.

The others were Park Soon-ae, education minister and the deputy prime minister for social affairs, Kim Seung-kyum, a joint chief of staff, and Kim Chang-ki, head of the National Tax Service.

If the National Assembly fails to review a nomination, the president can still make the appointment for all positions except prime minister.

Although Kim was nominated in June, the deadlocked National Assembly failed to act by a July 8 deadline, and the president went through with the appointment.

The Democratic Party, which holds a majority, and the People Power Party reached an agreement in the selection of a National Assembly speaker a week ago, but the two sides have yet to narrow their differences and remain at loggerheads.

Conflict has delayed the formation of committees, which hold hearings on Cabinet appointments.

The president's office on Sunday said it could no longer wait for the National Assembly to schedule the hearing on the FSC chairman nominee as the Korean economy is facing a crisis.

In his inauguration speech on Monday, Kim stressed that his priority as the new head of the financial authority will be stabilizing the financial markets.

"First and foremost will be stabilizing the financial market," Kim said.

"We have in the past overcome numerous financial crises," Kim said. "We will reorganize our contingency plan and policy alternatives and if needed create new policies."

Korean stock prices have fallen dramatically since the beginning of the year as hot money has flown out of the market toward safe havens.

Korea's trade balance has been hit by the falling won.

Kim said that the FSC will provide necessary financial support to small businesses and young people who are facing challenges amid rising interest rates, falling asset values and rising consumer prices.

The new FSC chairman also stressed that he will seek regulatory reforms that would contribute to innovation.

This could include changes to the regulations that prohibit manufacturers from owning financial companies or limiting financial companies to the financial business.

The new chairman said the agency will help virtual assets gain the trust of investors and consumers.

BY LEE HO-JEONG [lee.hojeong@joongang.co.kr]