Overview
- Shin Hyun-song, who took office Tuesday, said monetary policy must stay cautious and flexible because the Middle East war has pushed up oil prices and increased both inflation pressure and growth risks.
- His appointment advanced after Monday’s bipartisan adoption of a delayed confirmation report over questions about his daughter’s passport, and he later apologized for causing public concern.
- The Bank of Korea kept its key rate at 2.5% earlier this month for a seventh straight meeting, and Shin’s first rate decision comes on May 28 in a country where heavy energy imports make oil spikes bite harder.
- Shin set priorities to bolster tools that protect financial stability and to widen global use of the won, including work on digital payments such as a central bank digital currency and deposit tokens.
- Outgoing governor Rhee Chang-yong urged the central bank to lead research on long-term issues like education, housing and inequality, shaping a debate over how broad the bank’s role should be.