Vice Chairman of the Financial Supervisory Commission Lee Dong-gul Resigns

It was announced on August 27 that Lee Dong-gul, vice chairman of the Financial Supervisory Commission, recently expressed his intentions of resignation to Cheong Wa Dae. Vice Chairman Lee said, “Under these circumstances and my limited ability, it seems that it is time for me to resign.” But he did not clarify the reasons for his departure. He is planning to hand in his letter of resignation after Cheong Wa Dae responds to his statement.

Vice Chairman Lee is currently chairman of the controversial Stocks and Futures Committee, which has handled Kookmin Bank’s violation of accounting regulations. “It is only a coincidence that I handled that situation before I resign,” said Lee, who also stated, “Refrain from connecting my resignation to external situations.”

However, Vice Chairman Lee expressed that the disclosure of the level of disciplinary measures against Kookmin Bank President Kim Jung-tae by senior members of the Financial Supervisory Service was “unwise in releasing indistinct information.”

A senior member of the Financial Supervisory Commission said, “Vice Chairman Lee has been considering resigning under the justification that a new chairman should form the organization ever since Chairman Lee Jung-jae departed on August 2.”

Regarding the debatable financial supervisory system reform, Vice Chairman Lee replied, “In the long run, it should become a public civilian organization,” showing differences with newly appointed chairman, Yun Jeung-hyun. Lee, a well known “reformist” of the present government, was once in service at the Presidential Office Acceptance Committee, and was appointed vice chairman of the Financial Supervisory Commission last March while working as a senior researcher of the Korean Institute of Finance.

Suk-Ho Shin kyle@donga.com