Cheong Wa Dae to Select New FSC Chairman

Financial Supervisory Commission (FSC) Chairman Lee Jung-jae announced his resignation Saturday, with more than a year and a half of his tenure left.

It was reported that Lee had been debating whether he would resign or continue in office after the results of a special investigation into the credit card crisis were announced, giving rise to conflict between the relevant authorities over reorganization of the financial regulatory system.

Lee’s orthodox stance in favor of free-market economics may have influenced his decision to resign, some have speculated.

According to FSC spokesperson Kim Yong-hwan on Saturday, “I conveyed my will to resign to Cheong Wa-dae during my vacation because a variety of recent situations made me think it is time to step down from this post,” Lee said.

Lee went back to his office that day, a day after returning from a five-day vacation.

After he announced his resignation, he met with journalists and said, “I have deliberated over the decision to resign for a long time. I will accept all the criticism that I am irresponsible.”

In addition, during lunch with officials of the FSC and Financial Supervisory Service (FSS), he allegedly said, “Life is like a play, when I look it back on it. An act has finished and the actors will soon be forgotten.”

Cheong Wa Dae said Lee’s resignation had not yet been officially accepted, but it has been alleged that Cheong has begun the selection process for the next FSC chairman.

The candidates for the chairman position reportedly include FSC vice chairman Lee Dong-geol, Korean Development Bank (KDB) governor Yoo Ji-chang, KDB former governor Jung Gun-yong and Asian Development Bank (ADB) executive Yoon Jeung-hyun. Meanwhile, Lee’s second son, Jong-hoon, told the journalists who visited Lee’s house Saturday afternoon that Lee had gone to the country with his wife to cool his head.

Lee was once head of the Financial Management Bureau at the Ministry of Finance and then became vice chairman of the FSC and vice minister of the Ministry of Finance and Economy. He worked for a time at the law firm Yulchon and was inaugurated to a three-year term as FSC chairman in March 2003, right after the beginning of the present government.

Keuk-In Bae bae2150@donga.com