Financial Supervisory Service Gov. Choi Soo-hyun offered to step down Tuesday under pressure that had been mounting since the beginning of the year in the wake of a string of scandals in the local financial sector.

Korea Finance Corporation CEO Zhin Woong-seob was nominated by the Financial Services Commission, the supervising arm of the financial watchdog, to replace Choi. 

“Our efforts to eradicate irrational practices and to establish a legitimate financial culture also triggered complaints and criticism,” he said at his farewell ceremony held only hours after his resignation was confirmed. “Such conflict only proves that the market is alive and the system dynamic.”

Choi, who had been evading criticism about his leadership, was said to have received another push to resign at the latest parliamentary audit.

The financial chief started his three-year term in March 2013, shortly before President Park Geun-hye was inaugurated.

He repeatedly faced challenges over a series of misdeeds within local financial circles. Earlier this year, a massive customer information leak from credit card companies led to criticism that the FSS chief failed to thoroughly supervise the companies involved and take preventive measures.

In September, he was blamed for “inappropriately” interfering with KB Financial Group’s leadership feud, an incident that led to the resignation of KB Kookmin Bank president Lee Kun-ho and the dismissal of group chairman Lim Young-rok.

These scandals added up to prompt the FSC to immediately accept Choi’s resignation and nominate Zhin as his successor. The nomination requires the president’s approval.

Zhin, who has led the CoFC since February, previously served in the Financial Supervisory Commission before it was split into the FSS and FSC in 2008.

His nomination as the next FSS chief comes ahead of the planned merger between the CoFC and the Korea Development Bank within the year. The integrated policy finance organization will launch in January.

Born in 1959, Zhin majored in law at Konkuk University and received a master’s degree in economics at the State University of New York at Buffalo. He joined the civil service in 1984.

By Bae Hyun-jung (tellme@heraldcorp.com)