BOK Gov Shin Takes Office, Pledges Flexible Policy

Seoul, South Korea – Hyun Song Shin took office as Bank of Korea governor on Tuesday, stating that the central bank would pursue a flexible monetary policy to address inflation and growth risks associated with the Middle East conflict.

In his inaugural address, Shin said rising international oil prices, driven by the conflict, had increased upward pressure on inflation while weighing on economic growth.

He said the BOK would seek to maintain price and financial stability through cautious policy operations in response to those supply-side pressures.

Shin identified geopolitical conflicts, advances in artificial intelligence, and tariff-driven shifts in trade patterns as forces reshaping the global economy.

Within South Korea, he cited demographic changes, deepening polarization, real estate market conditions, and household debt as factors reducing the country’s growth potential, adding that the central bank would play an active role in supporting structural reforms.

Shin also outlined plans to enhance the BOK’s financial stability monitoring.

The central bank would draw on market price indicators to improve early warning systems and expand its analysis to cover the non-bank sector, off-balance-sheet transactions, and non-traditional financial products.

On currency infrastructure, Shin said the BOK would work with the government to establish a 24-hour foreign exchange market and an offshore won settlement system as part of efforts to internationalize the won.

The central bank will also advance its digital currency initiatives by expanding the role of its Central Bank Digital Currency and deposit tokens through the second phase of Project Hangang, and by participating in international projects, including Project Agora.

Shin succeeds Rhee Chang-yong, who completed a four-year term as governor.