SEOUL, April 15 (AJP) — The nominee to head the Bank of Korea (BOK) came under intense scrutiny Wednesday as opposition lawmakers questioned his foreign-denominated wealth and family-related issues, raising concerns over potential conflicts of interest.
Lawmakers on the National Assembly’s Finance and Economy Committee focused on nominee Shin Hyun-song’s asset structure, noting that the central bank chief is tasked with stabilizing the Korean won and the housing market.
According to his disclosure, more than 90 percent of Shin’s 4.6 billion won ($3.1 million) in financial assets are held in foreign currencies, including U.S. dollars, British pounds and Swiss francs.
Opposition lawmakers argued that such a portfolio could allow him to benefit from a weaker won, minimizing losses during depreciation while gaining when major currencies strengthen.
“Approximately 93 percent of the nominee’s 4.6 billion won in financial assets are in foreign currencies,” said Rep. Park Dae-chul of the People Power Party, questioning whether it is appropriate to appoint a central bank governor whose assets could gain from currency weakness.
“People are saying it is like letting a cat guard the fish,” added Rep. Park Sung-hoon.
The scrutiny comes as the Korean won remains under pressure. The average exchange rate for April stood at 1,493.42 per dollar, among the highest on record, although it showed signs of stabilizing at 1,474.2 on Wednesday.
The Bank of Korea has also spent more than $7 billion in foreign exchange reserves since late last year, with the country’s global ranking in reserves slipping from ninth to 12th as of February.
Shin, previously described as a “pragmatic hawk” for advocating preemptive tightening following Russia’s 2022 invasion of Ukraine, has recently assessed the current exchange rate and reserve levels as stable—adding to concerns over consistency and potential conflicts.
Lawmakers also raised questions over his real estate holdings. Shin owns an apartment in Seoul’s Gangnam district and a studio in Jongno, with a combined value exceeding 3.3 billion won.
He reportedly allowed his mother to continue living rent-free in the Gangnam apartment after purchasing it from her, prompting allegations of possible tax avoidance through family transactions.
The issue has gained further traction amid President Lee Jae Myung’s remarks criticizing multi-homeownership among public officials.
Additional controversy surrounds Shin’s academic transfer during military service and his daughter’s citizenship status. Lawmakers alleged that his daughter, who acquired British citizenship, continued to use a Korean passport for decades without proper reporting.
“Using a Korean passport for convenience while bypassing residency and immigration laws is ‘cherry-picking’ and deceptive,” said Rep. Chun Ha-ram of the Reform Party.
Shin has yet to submit related documents addressing these concerns.
Civic groups and experts also weighed in, arguing that a portfolio benefiting from currency depreciation represents a textbook conflict of interest for a central bank chief.
“It is natural for the public to distrust a nominee whose portfolio benefits as the real economy falters,” an opposition official said.
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