Deputy Prime Minister and Finance and Economy Minister Koo Yun-cheol met for breakfast with Bank of Korea Gov. Shin Hyun-song on April 23 and said “close consultations through policy coordination between fiscal and monetary policy are important.”
The meeting came two days after Shin took office on April 21. It was arranged to congratulate him and strengthen cooperation between the government and the central bank.
Ahead of the talks, Koo said the economy has faced difficulties since the second half of last year and that Shin’s arrival would be “a great help.” He said volatility remains high and stressed the need for close coordination with monetary policy.
Shin said the situation in the Middle East is ongoing and uncertainty is high, adding that the BOK would respond actively on market stability and foreign exchange issues. He said he would also stay in frequent contact on longer-term structural issues and institutional improvements.
The two sides shared views on recent economic conditions and exchanged opinions on policy responses. With uncertainty from the Middle East war persisting, they said risks have increased from high oil prices and supply-chain instability, raising downside pressure on growth and the risk of higher inflation. They agreed to run fiscal and monetary policy in a coordinated way.
They also agreed to strengthen cooperation in responding to financial and foreign exchange market instability, closely monitoring volatile conditions. They said they would push won internationalization through measures including a 24-hour foreign exchange market and building an offshore won settlement system, while working to improve market structure.
On medium- and long-term tasks, they shared the view that structural reforms are important to boost growth potential and ease polarization. They also exchanged views on directions for key initiatives including artificial intelligence, the green transition and a “super-innovation economy.”
Koo asked the BOK to use its research capacity to provide in-depth analysis and policy recommendations on structural reforms, and Shin said he would contribute actively.
They agreed to keep close communication through existing channels, including market-monitoring meetings, and to meet as needed to reinforce cooperation between the government and the central bank.
After the meeting, Shin told reporters that they discussed the exchange rate “broadly.” Asked about first-quarter gross domestic product growth of 1.7%, the highest in five years, he said it showed the resilience of the Korean economy.
* This article has been translated by AI.
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