The union of the Financial Supervisory Service (FSS) has strongly opposed the government's plan to relocate the agency to a regional area, urging for the withdrawal of the proposal. They argue that since most financial institutions, consumers, and listed companies are concentrated in the metropolitan area, moving the supervisory body could reduce oversight efficiency and lead to consumer harm.
In a statement released on August 17, the FSS union stated, "It is a grave mistake to push a supervisory body, which should be at the forefront of financial oversight, back to a secondary position," and demanded an immediate halt to discussions about the relocation.
The union criticized recent media reports suggesting that the FSS would be included in the second round of public institution relocations, which the government plans to announce at the end of this month. They claimed that the government is ignoring the voices of consumers and the financial sector, focusing solely on a uniform goal of relocating most public institutions.
They emphasized the importance of accessibility to the metropolitan financial sector due to the nature of financial oversight. According to the union, 81.4% of all financial complaints, 91.6% of financial institution headquarters, 88.3% of on-site inspection targets, and 72.7% of listed company headquarters are concentrated in the metropolitan area.
The union warned that a physical separation from the financial oversight field would lead to serious consumer harm, noting that FSS employees would have to travel back to Seoul for face-to-face meetings related to hundreds of permits and various reports each year, creating inefficiencies.
Concerns were also raised about the increased burden on consumers due to rising supervisory costs. They argued that if business expenses increase due to relocation, it could lead to higher supervisory fees for financial institutions, ultimately passing costs onto consumers through increased loan rates and fees.
Additionally, the potential weakening of supervisory capacity due to staff attrition was highlighted. The union stated, "If a significant number of key professionals leave due to the relocation, the supervisory capacity will decline sharply, and consumer harm will spread uncontrollably."
* This article has been translated by AI.
Copyright ⓒ Aju Press All rights reserved.