Financial Supervisory Service employees violate stock rules 147 times

Data submitted to the National Assembly reveals that 147 employees of the Financial Supervisory Service (FSS) have violated stock investment regulations between 2020 and July 2024. Despite these infractions involving the Capital Markets Act and employee codes of conduct, only four individuals—representing 2.7% of those caught—received formal disciplinary action, such as salary reductions or reprimands. The remaining 143 violators received only lower-level measures like warnings or cautions.

During the same period, the total value of financial investment products held by FSS employees rose significantly. As of last year, the reported holdings totaled approximately 30.56 billion won, a 56.3% increase from 2020. The number of employees holding such products also grew from 587 to 833, with the average holding per person increasing to 36.7 million won.

Lawmaker Park Seong-hun criticized the FSS for its lenient punishment and perceived tendency to protect its own, arguing that such ‘slap-on-the-wrist’ measures encourage moral hazard. Given that the FSS handles sensitive market information during inspections and investigations, critics are calling for a re-examination of internal control systems and stricter sanctions to prevent conflicts of interest.