Overview
- Shin Hyun-song, nominated Sunday by President Lee Jae Myung, was confirmed by the BIS to have stepped back from his duties with immediate effect.
- Lawmakers will hold a confirmation hearing that carries no veto power, positioning Shin to succeed Governor Rhee Chang-yong when Rhee’s term ends on April 20.
- Shin said recent swings tied to the Middle East conflict have lifted market and currency volatility, and he pledged a balanced approach that weighs inflation, growth and financial stability.
- The Bank of Korea has kept its key rate at 2.5% for six straight meetings, and analysts expect a firmer stance on price pressures and household debt under Shin, which could keep borrowing costs higher for longer for consumers and small firms.
- An Oxford-trained former Princeton professor, Shin earned notice for early warnings before the 2008 crisis and leaves a BIS role that London Business School’s Hélène Rey is set to assume in September.