Financial Watchdog Chief Resigns Over Nepotism Scandal
Financial Supervisory Service Governor Choe Heung-sik resigned abruptly on Monday over a nepotism scandal.
His decision came three days after the Weekly Chosun reported that he helped the son of a college friend get a job at KEB Hana Bank in 2013, when he was president of Hana Financial Group.
Sworn in only six months ago, Choe was the first FSS governor from the private sector.
But Choe denies the allegations. "I was neither involved in the personnel affairs of KEB Hana Bank nor did anything illegal," he said in a statement.
"I decided that the responsible thing for me to do is to resign to ensure fairness as the chief of the FSS that oversees recruitment irregularities at banks," he added.
Since the allegations were first raised, he has said he only "passed on the applicant's name" but did not get involved in the recruitment process.
The FSS plans to continue a special inspection of KEB Hana Bank over suspicions about recruitment irregularities.
In an e-mail to all FSS staff before resigning, Choe said, "We will launch an independent inspection team to investigate all suspicious recruitment processes at KEB Hana Bank, including my own."