Announcement Imminent for Four New Bank of Korea Monetary Policy Committee Members to Handle '0% Interest Rate' Range

[Image source=Yonhap News]

[Asia Economy Reporter Eunbyeol Kim] The Bank of Korea's announcement of new Monetary Policy Committee (MPC) candidates is reportedly imminent. As the Bank of Korea has embarked on a path of '0% base interest rate + unlimited liquidity supply' due to the novel coronavirus disease (COVID-19), there is keen interest in which MPC members with what perspectives on the future economy will be appointed.

According to the Bank of Korea on the 30th, the selection process for the four MPC members retiring on the 20th of next month is in its final stages. The four MPC members whose terms end next month are Ilhyung Lee (recommended by the Bank of Korea), Dongcheol Cho (recommended by the Ministry of Economy and Finance), Seungbeom Ko (recommended by the Financial Services Commission), and Inseok Shin (recommended by the Korea Chamber of Commerce and Industry). Each institution has already recommended successors, and it is reported that the Blue House’s verification has also been completed. Since MPC members do not undergo public hearings or other verification procedures, the candidates effectively reflect the Blue House’s intentions.

Among the figures currently being considered in the financial sector is former Ambassador to the United States Yoonje Cho. Having worked as an economic analyst at the World Bank (WB) and the International Monetary Fund (IMF), he served as the head of President Moon Jae-in’s think tank 'Policy Space for National Growth' during the presidential election.

Senior Deputy Governor Kwangyeol Yoo of the Financial Supervisory Service and Vice Chairman Byungdoo Son of the Financial Services Commission are also being discussed. Deputy Governor Yoo is a former standing member of the Securities and Futures Commission, and Vice Chairman Son has served as the Financial Services Commission’s Secretary-General and standing member.

From the Bank of Korea alumni, Youngkyung Seo, Director of SGI at the Korea Chamber of Commerce and Industry, and Min Jang, Senior Research Fellow at the Korea Institute of Finance, are mentioned. Director Seo was appointed as the Bank of Korea’s first female executive during Governor Joongsoo Kim’s tenure, and Senior Research Fellow Jang previously worked as the head of the Bank of Korea’s Research Department.

In academia, Professor Kwanho Shin of Korea University and Professor Seongin Jeon of Hongik University, who were active at the Korea Financial Research Center established by former Prime Minister Unchan Chung, are named. Professor Jinil Kim of Korea University, who worked as an economist at the U.S. Federal Reserve (Fed), is also being considered.

Meanwhile, given the severe situation due to COVID-19, there is talk that instead of replacing all four MPC members at once, at least one should be reappointed. Although MPC members are allowed to serve consecutive terms by regulation, there has been no precedent of reappointment.

This content was produced with the assistance of AI translation services.