FSS chief to keep pushing to revamp real estate sector, capital market

Financial Supervisory Service (FSS) Gov. Lee Bok-hyun speaks during a press event commemorating his second anniversary in office in western Seoul on Tuesday. [FSS]

Financial Supervisory Service (FSS) Gov. Lee Bok-hyun vowed to continue the drive for a restructuring of the real estate sector and the refinement of the capital market, including the value-up program, in the last year of his term.

“We will strive to achieve market stability and enhance the financial capabilities with project financing loan restructuring [in the real estate sector] and the corporate value-up program for the capital market,” said the chief financial watchdog during a press meeting held in western Seoul on Tuesday, marking the second anniversary since Lee took office.

The prosecutor-turned-governor is considered one of the closest top officials to President Yoon Suk Yeol. Lee, born in 1972, was the first prosecutor to take the position and the youngest governor since the FSS was established in 1999.

Lee is known for his strong leadership and active engagement with the public to a point often considered unprecedented for the position, although the governor’s assertive comments have previously landed him in hot water with accusations that he has overstepped his authority.

Addressing a question on such criticisms, Lee said that “the active communication was to enhance predictability [for market players],” adding that “as even minor information tends to cause a fluctuation in the financial market in a short period of time, I tried to step up communication efforts with the industry to promptly address [relevant issues].”

Regarding the proposed capital gains tax, the governor pointed out that “the situation has changed significantly since it was first enacted,” calling for further discussions. Introduced by former President Moon Jae-in, the tax's scheduled implementation in 2025 faces roadblocks, with President Yoon's vow in January to scrap it altogether.

Moreover, Lee stressed that restoring investors’ trust in the capital market with the illegal short-selling monitoring system and the value-up program designed to combat the undervaluation of local stocks would be one of the FSS’ priorities for the latter half of the year.

The governor cited the mitigation of risks stemming from a series of financial crises — starting with the Legoland-related debt default in 2022 — as the most challenging part of his job so far, saying that “such issues, including Taeyoung E&C workout and real estate project financing loans, remain our top priority.”

“I will get back to the basics to use my remaining time in office to be a good influence on the economy,” said Lee.

BY SHIN HA-NEE [shin.hanee@joongang.co.kr]