BOK Announces 'BOK 2030' Including Improvements to Monetary Policy Framework

[Image source=Yonhap News]

[Asia Economy Reporter Kim Eunbyeol] The Bank of Korea announced its mid-to-long-term development strategy 'BOK 2030' ahead of its 70th anniversary on the 12th. 'BOK 2030,' which includes strategies such as improving the monetary policy operation system, developing and researching central bank digital currency (CBDC), and responding to new financial and economic issues, will be implemented from the second half of this year.

On the 9th, the Bank of Korea announced 'BOK 2030,' with the mid-to-long-term vision of 'Leading the stability and development of the national economy.' It contains four major strategic goals: ▲expanding policy areas and enhancing policy tools ▲qualitative advancement of research and investigation ▲active promotion of digital innovation ▲gradual innovation in management and personnel, along with 16 specific strategic tasks to realize these goals.

Regarding monetary policy, the Bank plans to review improvements to the inflation targeting system, considering the current low inflation environment. It will also examine the development of monetary policy tools and the possibility of alternative operating systems. Given the ongoing low interest rate trend, the Bank intends to research alternative monetary policies as well.

The Bank will also focus on CBDC research and development and digital innovation. The Bank stated, "Starting from the second half of this year, urgent digital innovation will be promoted centered on the newly established Digital Innovation Office, and in-depth research will be conducted on the application of new research techniques such as artificial intelligence (AI) and machine learning."

To enhance the quality of research and investigation, preparatory work will be carried out for the establishment of a special research staff system and a research investigation committee. Research will also be conducted on the impacts and countermeasures related to changes in the international trade order, pandemics, and the strengthening of domestic and international financial market linkages.

The Bank of Korea also announced plans to establish systems and revise related regulations from a management and personnel perspective to support 'BOK 2030.' The Deputy Governor in charge of management will oversee execution and manage detailed implementation plans, with the Governor directly reviewing the outcomes.

A Bank of Korea official stated, "By promoting 'BOK 2030,' we aim to bring out the highest level of each employee's capabilities and expertise, effectively transforming them into organizational capabilities to respond more proactively and swiftly to the rapidly changing domestic and international financial and economic environment and digital innovation." He added, "The organizational and personnel operation system, work execution methods, and organizational culture will also be gradually rebuilt to meet the rapidly changing environment and public expectations."

Furthermore, the official emphasized, "We will continue to actively meet the increasing trust and expectations of the public and contribute continuously to the sound development of the national economy, fulfilling the role and responsibility of the central bank."

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