Reckless management?Recruitment corruption?Lax Financial Supervisory Service
Cho Eun Guk | ceg4204@ | 2017-09-21 11:16:28
The Board of Audit and Inspection to have found 52 illegal & unfair cases
The Financial Supervisory Service, which manages and supervises the financial industry, has been found to be internally hurt when it hurts, such as unscheduled hiring, disillusioned management, and illegal stock trading among employees. Especially, it seems inevitable and unreasonable in terms of inspection of financial institutions and protection of financial consumers and a major reorganization seems inevitable.
The Board of Audit conducted audits of the Financial Supervisory Service over the past 40 days from March 13 to April 21, and conducted an audit of the organization`s overall operations such as personnel and budget, inspections as well as sanctions for financial institutions, and financial consumer protection. A total of 52 illegal and unfair items were confirmed on September 20.
According to the Board of Audit and Inspection, the Financial Supervisory Service has been in charge of management since it has not been subject to separate supervision and supervision even though its budget has increased greatly every year. The FSS budget has increased by an average of 9.2% over the past three years. The budget for this year was KRW 366.6 billion, up 12.6 % from last year`s (KRW 325.6 billion).
The BOK pointed out that the Financial Supervisory Service was loosely controlled by the Financial Supervisory Authority and that there was no financial control agency such as the Ministry of Finance and the National Assembly and that financial management was intensifying. .
In particular, it showed the fuss about organization and manpower operation. Of the FSS staff, more than 1 to 3 employees, who are more than the team leader, accounted for 45.2% of the total, of which 63 of the first to second grade employees were unemployed. It is reported that they pay a lot of salary even though they perform the same tasks as the lower grade. Besides, while 9% is the managerial standard recommended by the tax office, the FSS has 397 employees, 20.6% of whom are employed. As a result, the average number of team members is only 3.9, which is inefficient. Also, the FSS did not relocate the existing workforce, but instead increased the labor cost burden by operating personnel outside the capacity of 255 people, including civil servants.
The recruitment of new employees also proved corrupt. The Financial Supervisory Service (FSS) recruited 5th grade new employees last year, and the general secretary increased the number of employees unfairly to pass the failed applicants in the handwriting test, and replaced the successful candidates with opaqueness on the grounds of `refinement`. Besides, the recruitment process was unfairly adopted by hiring a specialist to handle complaints in the first half of last year, and arbitrarily adjusting the duration and the score for those who came from the FSS.
The FSS has also revealed problems with controls on internal employees. FSS employees must trade financial investment products, such as stock transactions, through a reported account, and report sales specifications quarterly. However, over the past five years, 50 employees have violated the Capital Markets Act, including the sale of financial investment products or the reporting of accounts and transactions using the accounts of other persons.
The Financial Supervisory Service also inspects the mutual financial association. However, the inspections and sanctions have been ineffective because of lack of regulations on institutional sanctions, and sanctions have been imposed on violations of non-financial related laws such as embezzlement and misappropriation even though the grounds for sanctions are not clear. In addition, when calculating the penalties for violating financial institutions, the penalties were not applied even if the reasons for the reasons were weighted. Especially, it was revealed that savings banks and lenders were negligent in supervising excess interest rate loans and neglected to provide consumer protection measures for insufficient insurance sales. As the dismissed human and organizational structure of the FSS is revealed, it seems inevitable that internal reforms, including reorganization, have taken place since Choi Hyeong-sik, the new head of the Financial Supervisory Service. The Financial Supervisory Service plans to make improvements by the end of next month and complete follow-up measures by the end of this year in connection with the audit results of the audit.
By Cho Eun Guk ceg4204@
[ copyright ⓒ The Digitaltimes ]
The Financial Supervisory Service, which manages and supervises the financial industry, has been found to be internally hurt when it hurts, such as unscheduled hiring, disillusioned management, and illegal stock trading among employees. Especially, it seems inevitable and unreasonable in terms of inspection of financial institutions and protection of financial consumers and a major reorganization seems inevitable.
The Board of Audit conducted audits of the Financial Supervisory Service over the past 40 days from March 13 to April 21, and conducted an audit of the organization`s overall operations such as personnel and budget, inspections as well as sanctions for financial institutions, and financial consumer protection. A total of 52 illegal and unfair items were confirmed on September 20.
According to the Board of Audit and Inspection, the Financial Supervisory Service has been in charge of management since it has not been subject to separate supervision and supervision even though its budget has increased greatly every year. The FSS budget has increased by an average of 9.2% over the past three years. The budget for this year was KRW 366.6 billion, up 12.6 % from last year`s (KRW 325.6 billion).
The BOK pointed out that the Financial Supervisory Service was loosely controlled by the Financial Supervisory Authority and that there was no financial control agency such as the Ministry of Finance and the National Assembly and that financial management was intensifying. .
In particular, it showed the fuss about organization and manpower operation. Of the FSS staff, more than 1 to 3 employees, who are more than the team leader, accounted for 45.2% of the total, of which 63 of the first to second grade employees were unemployed. It is reported that they pay a lot of salary even though they perform the same tasks as the lower grade. Besides, while 9% is the managerial standard recommended by the tax office, the FSS has 397 employees, 20.6% of whom are employed. As a result, the average number of team members is only 3.9, which is inefficient. Also, the FSS did not relocate the existing workforce, but instead increased the labor cost burden by operating personnel outside the capacity of 255 people, including civil servants.
The recruitment of new employees also proved corrupt. The Financial Supervisory Service (FSS) recruited 5th grade new employees last year, and the general secretary increased the number of employees unfairly to pass the failed applicants in the handwriting test, and replaced the successful candidates with opaqueness on the grounds of `refinement`. Besides, the recruitment process was unfairly adopted by hiring a specialist to handle complaints in the first half of last year, and arbitrarily adjusting the duration and the score for those who came from the FSS.
The FSS has also revealed problems with controls on internal employees. FSS employees must trade financial investment products, such as stock transactions, through a reported account, and report sales specifications quarterly. However, over the past five years, 50 employees have violated the Capital Markets Act, including the sale of financial investment products or the reporting of accounts and transactions using the accounts of other persons.
The Financial Supervisory Service also inspects the mutual financial association. However, the inspections and sanctions have been ineffective because of lack of regulations on institutional sanctions, and sanctions have been imposed on violations of non-financial related laws such as embezzlement and misappropriation even though the grounds for sanctions are not clear. In addition, when calculating the penalties for violating financial institutions, the penalties were not applied even if the reasons for the reasons were weighted. Especially, it was revealed that savings banks and lenders were negligent in supervising excess interest rate loans and neglected to provide consumer protection measures for insufficient insurance sales. As the dismissed human and organizational structure of the FSS is revealed, it seems inevitable that internal reforms, including reorganization, have taken place since Choi Hyeong-sik, the new head of the Financial Supervisory Service. The Financial Supervisory Service plans to make improvements by the end of next month and complete follow-up measures by the end of this year in connection with the audit results of the audit.
By Cho Eun Guk ceg4204@