Finance Minister Park Hong-keun and Bank of Korea Governor Shin Hyun-song held their first official meeting on May 14, agreeing to strengthen cooperation on fiscal and monetary policy to address complex crises. This marks the first official meeting between the heads of the two institutions in history. They pledged to work closely together to tackle challenges posed by the Middle East conflict, low growth, and demographic changes.
During the meeting at the Bank of Korea headquarters in Seoul, Park stated, "The Ministry of Economy and Finance and the Bank of Korea must harmonize fiscal and monetary policies to enhance future growth potential and actively work to overcome structural crises."
This meeting is the first since the revival of the Ministry of Economy and Finance after 18 years. Previously, Governor Shin met with Deputy Prime Minister and Minister of Economy and Finance Koo Yun-cheol just two days after his appointment on April 23.
Park noted, "In response to the unexpected crisis of the Middle East conflict, we organized a supplementary budget of 26 trillion won in the shortest time in history. We are also working swiftly to ensure that citizens can feel the results more quickly." He added, "I visited the Bank of Korea to open a new path for cooperation and hope to maintain close and constructive communication on important policy tasks based on mutual respect for independence."
He emphasized the need to address structural issues facing the South Korean economy and changes in the external environment. "As our economy continues to face structural problems amid fundamentally changing external conditions, the collaboration between the Ministry, which designs the country's medium- to long-term future strategy linked to fiscal policy, and the Bank, which prioritizes macroeconomic stability, is crucial at this time," he said.
Park also highlighted the significant transformations in industrial structure and artificial intelligence, as well as the demographic changes. He stated, "We are witnessing structural challenges such as local decline, polarization, and the climate crisis, which can be effectively overcome through organic policy cooperation among various policy variables."
He expressed hope that the meeting would enhance communication between the two institutions, allowing them to find solutions to economic challenges facing South Korea while sharing insights and collaborating closely.
On this occasion, Park presented Governor Shin with a bonsai pine tree, explaining, "Just as roots and branches depend on each other, our two institutions should continuously cooperate for the nation and its people."
In response, Governor Shin congratulated the Minister on the revival of the Ministry and his appointment, stating, "The bonsai pine embodies the values that our two institutions should strive for." He added, "Just as the pine tree's roots and trunk support each other to maintain its greenery over time, our institutions will work together to ensure that our economy remains stable amid domestic and external challenges."
Shin further noted, "The Bank of Korea will operate policies aimed at price stability and financial stability while also deeply considering issues related to growth potential. Since complex economic issues cannot be resolved by the efforts of a single institution, we will continue to share insights and collaborate with the government."
* This article has been translated by AI.
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