President Lee Jae Myung called for action against improper practice in the financial sector, where an "inner circle" of handful of people take turns to head financial institutions.

At a policy briefing by the nation's financial regulators on Friday, President Lee told Financial Supervisory Service Governor Lee Chan-jin that though the government should not directly intervene in such matters, the practice should not be overlooked.

On the subject of the FSS's plans to improve governance in the sector, the president said he has received many anonymous letters criticizing candidates for the top posts or hiring procedures.

He said many of the claims seem to be valid, and suggested that members of the "inner circle" lack morality and competence.

The FSS chief said the task force on the governance reforms will launch by January to draw up related tasks and submit a bill.