On the 23rd, Deputy Prime Minister and Minister of Economy and Finance Koo Yun-cheol and Bank of Korea Governor Shin Hyun-song met to agree on continuing their collaboration to stabilize the volatile financial and foreign exchange markets. This meeting marked the first encounter between the two leading figures in South Korea’s economic and monetary policy since Governor Shin’s appointment on the 20th, and it’s noted as the quickest meeting between a Deputy Prime Minister and a Bank of Korea Governor.
During their breakfast meeting at the Bankers’ Club in Jung-gu, Seoul, the two officials shared their perspectives on the current economic situation. They discussed future policy responses, agreeing to harmonize fiscal and monetary policies amidst ongoing uncertainties like high oil prices and supply chain disruptions due to the recent Middle East conflict, which have heightened the risks of economic slowdown and inflation.
They also resolved to actively promote the internationalization of the Korean won, including plans like opening the foreign exchange market for 24 hours and establishing an offshore won settlement system. Additionally, they decided to work together on fundamental improvements in the financial and foreign exchange markets.
The meeting included an exchange of ideas on major agenda items such as artificial intelligence (AI), green transformation, and the ultra-innovative economy. Deputy Prime Minister Koo requested that the Bank of Korea utilize its research capabilities to provide in-depth analysis and policy suggestions in the area of structural reform, to which Governor Shin responded that they would actively contribute.
Deputy Prime Minister Koo and Governor Shin agreed to maintain close communication through existing channels such as market situation assessment meetings and to meet as needed to enhance collaboration between the government and the central bank.