Chairman Eun Sung-soo of the Financial Services Commission delivers a speech at his inauguration ceremony as the 7th chairman on Sept. 9.

The new head of South Korea's financial regulator on Sept. 9 pledged to act quickly if volatility in the nation's financial markets increases.

Eun Sung-soo, the new chairman of the Financial Services Commission (FSC), made the remarks in his inauguration speech. The nation's financial markets have experienced volatility in recent months over multiple domestic and external factors.

“Financial authorities will take necessary measures in a timely manner if volatility increases excessively,” Eun said. “I will firmly maintain market stability over uncertainties at home and abroad.”

South Korea's export-reliant economy is grappling with a bruising trade dispute between the United States and China. Adding to these woes, Japanese export curbs against South Korea are expected to weigh on the nation's economy.
The FSC has contingency plans fully prepared for each possible scenario, Eun said.

Along with market stabilization, Eun said he will speed up efforts to innovate the financial industry. The FSC will "continue to bring innovation to the financial sector, while stabilizing the financial system.”

Eun, a former chief executive of the state-run Export-Import Bank of Korea who has served at the finance ministry for about three decades, is also tasked with slowing down the pace of growth of the nation’s household debt and restructuring some of the country's bloated business sectors.

The 58-year-old Eun has been credited with stabilizing the nation's financial markets following the 2008 global financial crisis and the European debt turmoil.

Eun, who has served in various capacities at the financial ministry since 1983, was director of the international financial division in 2011 and 2012.

Eun Sung Soo, as a nominee for the chairman of Financial Services Commission of Korea warned not to make a hasty move to institutionalize cryptocurrency market, expressing concerns that it would risk evoking unnecessary side-effects.
In his answer to questionnaires put forward by parliamentary members of the National Assembly for the confirmation hearing, Mr. Eun said, “The adoption of cryptocurrencies by the de facto financial sectors would run risks of not only reigniting speculative investments crazes for properties and real estates, but also paving the way for money laundering.”

So, he stressed that the government would need to take a cautionary step in introducing cryptocurrencies in the de facto financial system, adding that the government must reach an international consensus to implement a legal framework for preventing cryptocurrencies from being misused for money laundering before the use of the digital money are legalized.

Chairman Eun Sung-soo of the Financial Services Commission is seen at a briefing session with reporters held at a chip company located in Anseong, Gyeonggi Province on Sept. 17. (Photos: FSC)

Touching on the pending issues of reporting systems for licenses of cryptocurrency exchanges , he pointed out that amendments on the Act on Reporting and Use of Financial Transaction Information must be passed before the reporting system are introduced.

Added he, “Today, cryptocurrency exchanges are established and being operated in the self-regulating way in some countries, but there are movements to strengthen government regulations across the world to protect investors. The reporting system for the opening of cryptocurrency exchanges is one of the regulations in force.”

“This helps explain why the amendments on the Act on Reporting and Use of Financial Transaction Information are in dire need, which will legalize the reporting system on the opening of cryptocurrency exchanges and prevention measures of cryptocurrency-based money laundering,” he stressed.