Seoul: The Finance Ministry has added 11 institutions to its list for enhanced oversight, excluding the Financial Supervisory Service (FSS) from this year's expanded surveillance list. This decision comes amidst ongoing discussions and controversies regarding the FSS's supervisory practices.
According to Yonhap News Agency, the Ministry of Economy and Finance reported that 11 state-run organizations qualified for public institution status this year, bringing the total to 342. Each year, the ministry evaluates approximately 500 organizations for this designation, which subjects them to stringent government management and oversight. This system allows the finance minister to potentially request the dismissal of an institution's head.
The FSS, which was considered for inclusion as part of a broader governmental restructuring initiative last year, was notably absent from the latest list. The ministry stated that it decided against designating the FSS after extensive deliberations concerning the independence of its financial supervisory functions.
Finance Minister Koo Yun-cheol noted that while the FSS's authority has grown, there have been persistent criticisms regarding its public accountability. These critiques have highlighted issues related to the appropriateness of its powers and concerns over opaque management practices. The minister emphasized that while designating the FSS as a public institution might enhance accountability and transparency, it could also compromise its autonomy and professional expertise, possibly leading to inefficiencies.
Instead of pursuing a formal designation, the government plans to enhance the public nature and transparency of the FSS's operations through substantive measures, focusing on improving its overall management, the ministry conveyed.