Finance Minister Koo, Bank of Korea Gov. Shin pledge closer policy coordination

Deputy Prime Minister and Minister of Economy and Finance Koo Yun-cheol and Bank of Korea Gov. Shin Hyun-song met for the first time on the 23rd and reaffirmed their commitment to coordinate monetary and fiscal policy.

Before their breakfast meeting at the Korea Federation of Banks building in central Seoul, Koo said it was important for the Ministry of Economy and Finance and the central bank to “combine policies organically” and communicate closely. He said they would meet and consult as needed.

The meeting came two days after Shin took office, the earliest such meeting on record between a deputy prime minister and a Bank of Korea governor. It was arranged to congratulate Shin and exchange greetings.

Koo said the economy has faced difficulties since the second half of last year and that Shin’s arrival would be a major help. He said volatility remains high and that close consultations through coordination with monetary policy are essential.

With financial and foreign-exchange markets volatile, Koo said the exchange rate is an issue the ministry and the central bank must address more closely. He also asked the central bank to share ideas on structural reform and boosting growth potential, noting its research capacity.

Shin said uncertainty remains high as the situation in the Middle East continues, and that the Bank of Korea would respond actively on market stability and foreign-exchange issues. He said it was important to balance trade-offs between growth and inflation.

He added that he would stay in frequent contact not only on immediate issues but also on long-term structural challenges and institutional improvements.