New BOK Monetary Policy Committee Member Begins Duties..."Central Bank Role Grows Amid COVID-19"

[Image source=Yonhap News]

[Asia Economy Reporter Kim Eunbyeol] The newly appointed Monetary Policy Committee (MPC) members who will lead the Bank of Korea's financial monetary policy committee for the next 3 to 4 years began their duties on the 21st. The members, who will lead the MPC amid significant damage to the real and financial markets caused by the novel coronavirus disease (COVID-19), unanimously expressed the heavy responsibility on their shoulders. They also stated that, as the role of the Bank of Korea and central banks worldwide is expected to grow, they will focus on establishing a 'New Normal' standard.

On the same day, the Bank of Korea held an inauguration ceremony at its headquarters in Jung-gu, Seoul, where it presented appointment letters to the new members Jo Yoonje, Seo Youngkyung, Joo Sangyoung, and reappointed member Ko Seungbeom.

Reappointed member Ko Seungbeom said, "With COVID-19 spreading worldwide, severely impacting our country's real economy and financial markets, I feel a heavy responsibility as I continue this important role," adding, "In crisis situations like this, policy decisions aimed at actively responding to the crisis must take priority." He further stated, "Expectations for the Bank of Korea's active role have never been greater," and added, "I will work closely with the MPC and Bank of Korea staff." Member Ko also predicted that difficulties in the real economy and financial markets are likely to persist for a considerable period.

Member Jo Yoonje said, "The global economy is in great turmoil, and the Korean economy faces significant challenges due to ongoing structural changes, now compounded by the extraordinary situation caused by COVID-19," adding, "I will do my best to support monetary policy so that the Korean economy can maintain stable and sustainable growth."

Bank of Korea alumnus Seo Youngkyung said, "COVID-19 has brought significant changes to the role of central banks and may represent a turning point in the history of the Bank of Korea," adding, "Measures such as the 0% range base interest rate, Korean-style quantitative easing, and direct lending to securities firms, which were previously unthinkable, have been implemented, and additional policy measures must be considered to ensure smooth liquidity supply to the private sector." She also added, "Even beyond financial market shocks, the prolonged economic downturn and employment instability may make unprecedented monetary policies the 'New Normal.'"

Member Joo Sangyoung said, "I feel a heavy responsibility as I take on this role at a critical time when the response capabilities of both the government and central bank are being tested," adding, "I will do my best to ensure financial stability and economic vitality recovery."

Among the new members, there are individuals close to the pro-government and income-led growth theories. Therefore, experts expect stronger policy coordination with the government in response to COVID-19.

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