The consolidation of oversight powers marks a shift toward interventionist regulation and centralized governor control

The Financial Supervisory Service (FSS) announced on Monday a plan to restructure its organization by establishing a “Consumer Protection General” sector reporting directly to the governor. The overhaul will integrate dispute mediation — previously handled as a separate function — into industry-specific bureaus covering banking, insurance and securities. Under this “one-stop” model, product screening, inspections and consumer relief will be consolidated within the same sectoral silos.

The move comes amid President Lee Jae Myung’s recent criticism of long-entrenched financial holding company leadership as “corrupt inner circle.” Following a presidential directive to scrutinize management selection procedures, the FSS has designated BNK Financial Group as its first inspection target, with a formal review of the group’s leadership appointment process scheduled to begin in January.

The Financial Supervisory Service (FSS) announced on Monday a plan to restructure its organization by establishing a “Consumer Protection General” sector reporting directly to the governor. The overhaul will integrate dispute mediation — previously handled as a separate function — into industry-specific bureaus covering banking, insurance and securities. Under this “one-stop” model, product screening, inspections and consumer relief will be consolidated within the same sectoral silos.

The move comes amid President Lee Jae Myung’s recent criticism of long-entrenched financial holding company leadership as “corrupt inner circle.” Following a presidential directive to scrutinize management selection procedures, the FSS has designated BNK Financial Group as its first inspection target, with a formal review of the group’s leadership appointment process scheduled to begin in January.

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