Recent problems of a credit card company`s insolvency at the end of 2003 again led to the controversial issue of the need for restructuring the current financial supervisory agency system in Korea because such insolvency is believed to be partly due to the inefficient supervisory system which is currently divided into the Financial Supervisory Commission (the "FSC"), a financial supervisory policy-decision body, and the Financial Supervisory Service (the "FSS"), a financial supervisory execution agency. Thus, this article reviews the several problems of the current financial supervisory system: (i) the overlap of activities and the inefficiency due to expansion of the government official organization under the FSC involved in the process of financial supervisory policy-making; (ii) lack of neutrality or independence of the financial supervisory agencies (e.g. lack of guarantee of tenure of the FSC`s Chairman); (iii) excessive interference with financial supervisory operations by the Ministry of Finance and Economy (the "MOFE"), which has power to enact financial related laws and their enforcement decrees; (iv) the financial regulators`` excess interference with financial institutions`` management autonomy by disregarding market principles; and (v) lack of specialization of financial supervisors`` staffing resources. Based on such analysis of the problems, this article suggests some solutions for improving the financial supervisory system: first, the current divided supervisory system should be consolidated; second, such consolidated body should be operated in the form of non-governmental agency for procuring the independence or neutrality of the regulators and so more efficient supervisory operations; third, certain measures for protecting the neutrality or independence of the financial supervisors should be taken, for example, requirements for consent by the National Assembly in the President`s appointing the head of the regulators, and guarantee of tenure of the Chairman of the FSC; fourth, along with the procuring of the supervisory organization`s independence, the regulators`` accountability should be also emphasized, e.g., requirements for the regulators to submit an annual operation report to the National Assembly and for the disclosure of the minutes of the FSC`s meeting; fifth, the transparency of the detailed financial supervisory rules and regulations should be procured; sixth, the regulators should be empowered for initiating the proposal of the enactments and amendments of financial related laws and enforcement decrees to the MOFE; finally, mostly importantly, enormous efforts should be pursued for enhancing specialization of the personnel involved in financial supervision.