The head of South Korea's financial watchdog is urging public financial agencies to adopt performance-based wage systems.

Meeting with heads of financial authorities on Monday, Financial Services Commission(FSC) Chairman Yim Jong-yong stressed that the wage systems would be critical for the success of the government's related reforms for the sector. 

Yim also urged labor unions and firms in the financial sector to start discussing the issue in the coming weeks. 

At the meeting, the FSC signed a memorandum of understanding with the Industrial Bank of Korea, the Korea Eximbank and seven other public financial institutions to promote performance-based wage systems in the sector.