Bank of Korea Deputy Governor Kwon Min-su emphasizes flexible policy

Kwon Min-su has officially assumed his role as the Deputy Governor of the Bank of Korea. In his inaugural remarks, Kwon emphasized the need for cautious yet flexible monetary policy decisions, noting that interest rate adjustments must balance economic growth, inflation, and financial stability.

Kwon identified several key risks to monitor, including inflation exceeding target levels, household debt, rising housing prices, and exchange rate volatility. He also noted that geopolitical and trade risks must be factored into policy judgments. Regarding the Korean Won, he expressed a long-term view of a downward trend in exchange rates based on fundamentals, though he acknowledged short-term uncertainties in the stock market and Middle East situation.

A primary objective for his three-year term will be the internationalization of the Won and the expansion of financial markets. This includes working toward the inclusion of South Korean markets in the MSCI Developed Markets Index, following progress made with the World Government Bond Index (WGBI). Additionally, Kwon pledged to strengthen two-way communication with markets and enhance the central bank's role in addressing structural issues such as growth potential and climate change.