The Financial Services Commission will be restructured into the ‘Financial Supervisory Commission’… The Financial Supervisory Service will be separately divided into the ‘Consumer Protection Agency’.

The plan to separate the Financial Consumer Protection Agency from the Financial Supervisory Service has been finalized. In a high-level party-government meeting held today (7th), the Democratic Party of Korea announced an amendment to the Government Organization Act, which includes plans to restructure entities such as the Financial Services Commission and the Financial Supervisory Service. The Financial Services Commission will transfer its policy functions to the Ministry of Finance and Economy, which will be separated from the Ministry of Strategy and Finance. Once the policy functions are transferred, the Financial Services Commission will be re-established as the Financial Supervisory Commission, focusing on supervisory functions. A new Financial Consumer Agency will be created by separating and elevating the Consumer Protection Office of the current Financial Supervisory Service. The newly established agency is expected to have the authority for inspections and sanctions to protect financial consumers. The current chairman of the Financial Services Commission, having already been vetted through a National Assembly hearing, is expected to be appointed as the chairman of the new Financial Supervisory Commission through supplementary provisions in the Government Organization Act. Whether the roles of the head of the Financial Supervisory Service and the chairman of the Financial Supervisory Commission will be combined is expected to be finalized during the future institutional planning process.