South Korea's Financial Services Commission is experiencing an attorney staffing crisis as multiple long-tenured legal professionals depart for major law firms. FSC Senior Secretary A, who served approximately 21 years after joining through the private-sector recruitment exam, recently submitted resignation and will leave by the end of next month to join a large domestic law firm, according to financial industry sources on the 24th. The exodus is driven by limited promotion opportunities for non-civil-service-exam hires and uncertainty surrounding the agency's possible relocation to Sejong City. The departures come as the FSC faces increasing legal demands from large-scale financial company sanctions and administrative litigation.
Multiple Senior Attorneys Leave FSC for Major Law Firms
Senior Secretary A, who holds a law license and joined the FSC through private-sector recruitment approximately 21 years ago, recently informed the agency of plans to resign. A is assigned to a capital markets-related division and will depart by the end of next month to join a major domestic law firm.
In March, Shin Sang-rok, who served as Capital Markets General Affairs Director for approximately 14 years, moved to law firm Gwangjang. Shin led the Capital Markets General Affairs Division, which became a key department under the government's strict stance on stock manipulation.
In January, attorney Hong Su-jeong, who worked at a major law firm before joining the FSC and serving for approximately 15 years, returned to her former employer. Hong served as Director of Regulatory Reform and Legal Affairs at the FSC, overseeing financial company sanctions, legal interpretation, and administrative litigation. She now handles financial regulatory reform work at law firm Taepyeong.
Attorney Sim Won-tae, who handled virtual asset legislation at the FSC for an extended period, is scheduled to join law firm Kim & Chang. Kim Gwan-beom of the Capital Markets Investigation Division left last month to become an expert advisor at Kim & Chang.
Even civil service exam graduates increasingly choose legal careers. An official surnamed Eun from the banking division passed law school entrance exams and resigned early this year. In early 2024, three FSC employees in their 20s who passed law school entrance exams departed simultaneously, causing internal concern. Two of them have secured positions at Kim & Chang.
Limited Promotion Paths and Relocation Concerns Drive Departures
Non-civil-service-exam hires face limited promotion paths compared to civil service exam graduates. Many decide to return to private practice after reaching section chief level at most, as they find it difficult to advance to major positions or senior ranks.
Increased uncertainty about post-retirement re-employment also factors into departure decisions. Recent government re-employment screening has become stricter, with even senior FSC officials facing obstacles. The consensus among non-exam staff is that they must secure positions when opportunities arise.
The agency's possible relocation to Sejong City creates additional concerns. If relocation becomes reality, employees with life foundations in Seoul face increased burdens. Law firms represent a realistic option for remaining in Seoul while utilizing expertise gained at the FSC.
One financial industry official who left the FSC stated, "Even after spending a long time in the organization, non-exam hires have limits in expanding their position. With few senior and junior colleagues to provide guidance, individual capability was essentially what mattered. When considering expertise and long-term career paths, I chose a law firm."
FSC Attorney Staffing Drops to Two Full-Time Positions
Once pending resignation procedures are completed, only two full-time attorneys will remain at the FSC (excluding fixed-term positions).
The FSC faces growing legal review demands. The agency must fully secure legal grounds and procedural legitimacy before imposing large-scale sanctions and fines on financial companies. Administrative lawsuits filed in opposition to sanctions continue to accumulate. Legislation for new areas including virtual assets and token securities adds to the burden.
While attorneys and accountants commonly work at government agencies for one to three years to gain public sector experience before returning to private practice, most recent FSC departures involve staff who served over 10 years. Internal concerns are significant. The FSC is reportedly closely monitoring the possibility of additional departures.
An FSC official stated, "FSC personnel remain valuable to law firms. With the possibility of agency relocation being discussed, the outflow of non-exam and professional staff may continue for the time being."
FAQ
How many attorneys will remain at South Korea's FSC after recent departures?
Only two full-time attorneys will remain at the Financial Services Commission once pending resignation procedures are completed, excluding fixed-term positions. This represents a dramatic reduction from previous staffing levels as multiple long-tenured legal professionals departed for major law firms.
Why are FSC attorneys leaving for law firms after long tenures?
Non-civil-service-exam hires face limited promotion opportunities compared to exam graduates, typically reaching section chief level at most. Additional factors include stricter government re-employment screening creating post-retirement uncertainty, and the FSC's possible relocation to Sejong City, which would burden employees with life foundations in Seoul. Law firms offer these professionals the ability to utilize their regulatory expertise while remaining in Seoul with clearer career advancement paths.
