$O_L$ is not complete. The completion is usually uncountable, but if $K$ is countable then $K_s$ is uncountable.
I think the easiest way is just to prove it. Let $f$ be an irreducible polynomial with a simple root mod $\bar{v}$. Then the derivative of $f$ is nonzero mod $\bar{v}$, so it's nonzero, so $f$ is separable, so its roots are in $K_S$. Every root that doesn't disappear mod $\bar{v}$ is a $\bar{v}$-integer. Look at the Galois action on those roots. The inertia group preserves each root's residue mod $\bar{v}$, so it fixes that root, so that root lies in $L$.