Kwon Min-soo, the newly appointed Deputy Governor of the Bank of Korea, stated on August 21, "The conditions facing our economy are challenging, and cautious and flexible policy decisions are necessary at this time."
During his inauguration ceremony, Kwon noted, "While growth is improving more than expected due to strong semiconductor performance, inflation remains above target levels, and risks of financial imbalance continue, particularly concerning household debt and housing prices." He emphasized the need for careful and adaptable policy decisions, considering exchange rate volatility and geopolitical and trade risks.
Kwon expressed his commitment to ensuring that the Bank of Korea fulfills its fundamental roles of price stability and financial stability. He stated, "I will enhance our macroeconomic analysis and economic judgment capabilities and continuously improve our monetary policy tools and market communication."
He also indicated a focus on long-term challenges, including a soft landing for household debt, financial stability, growth potential, and balanced development across regions, sectors, and social classes.
Kwon mentioned plans to enhance the Bank's response capabilities in financial and foreign exchange markets and to promote the internationalization of the Korean won. He aims to respond swiftly through advanced market analysis and open market operations while ensuring that financial stability is not compromised by improving the macroprudential framework.
He added, "We will continue to build on our success in being included in the World Government Bond Index (WGBI) and focus on the next challenge of being included in the Morgan Stanley Capital International (MSCI) developed index. We will ensure the stable establishment of a 24-hour foreign exchange market and support the development of an offshore won payment system, digital currency, and payment infrastructure without disruption."
Kwon also outlined a vision to strengthen domestic and international communication by proactively raising agendas and proposing solutions within international organizations and central bank cooperation frameworks. He stated, "I will strive to explain the Bank of Korea's decisions clearly and accurately to investors, policymakers, and the public, and to reflect market voices in our policies. We will also carefully develop statistics and public services in line with changes in the economic structure, such as the spread of artificial intelligence (AI)."
Finally, he emphasized the importance of creating a Bank of Korea where the organization and its members grow together. Kwon remarked, "We will effectively utilize AI in our work to innovate our working methods and strengthen risk management in response to changes in the information technology (IT) environment and working infrastructure."
* This article has been translated by AI.
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