Park Ki-young Appointed as New Monetary Policy Committee Member: "Must Maintain Central Bank Independence and Consider Policy Mix"

New BOK Monetary Policy Committee Member's Inaugural Speech
"Committed to Contributing to the Sound Development of the National Economy"

[Asia Economy Reporter Jang Sehee] Park Ki-young, the newly appointed member of the Monetary Policy Committee, emphasized the need to maintain the central bank's independence while also considering the policy mix with fiscal policy and macroprudential policy. He added that it is necessary to contemplate how to operate monetary policy in the post-COVID-19 era.

On the 6th, the Bank of Korea announced that Park had newly assumed his position as a member of the Monetary Policy Committee.

In his inaugural speech, the new committee member Park emphasized, "The central bank is currently facing new challenges across all time horizons, both short-term and medium-to-long-term."

He stated, "In the short term, we need to consider how to operate monetary policy in the post-COVID situation," and added, "In the medium to long term, the role of the central bank is required to take into account changes in demographic structure, the Fourth Industrial Revolution, and climate risks." He also pledged, "I will work hard to contribute to the sound development of the national economy during my term."

Meanwhile, according to Article 16 of the Bank of Korea Act, Park will serve as a member of the Monetary Policy Committee for 1 year and 7 months, until April 20, 2023, completing the remaining term of the late former member.

The following is the full text of the inaugural speech.

Hello, I am Park Ki-young, newly appointed as a member of the Monetary Policy Committee. I feel a heavy responsibility in taking on this important role at a time of high domestic and international uncertainty.

As you well know, the paradigm of monetary policy has continuously evolved as it faced historical events. A recent example is the global financial crisis of 2008, which marked the beginning of discussions on a new paradigm represented by unconventional monetary policy. Since then, debates on whether to intervene in monetary policy, its scope, and tools have continued. Also, intertwined with the COVID-19 situation, economic inequality?previously not considered within the central bank’s scope?has recently begun to be analyzed from the perspective of monetary policy.

Considering how monetary policy paradigms evolve due to historical events, the central bank is currently facing new challenges across all time horizons, both short-term and medium-to-long-term. In the immediate short term, we must consider how to operate monetary policy in the post-COVID situation. In the medium to long term, the role of the central bank is required to take into account changes in demographic structure, the Fourth Industrial Revolution, and climate risks. Furthermore, as seen recently in the COVID-19 situation and asset market overheating issues, we must also consider the policy mix with fiscal policy and macroprudential policy while maintaining the central bank’s independence. I understand that many proactive studies and reviews are already underway within the Bank of Korea. I also intend to contribute in my capacity.

While the responsibility weighs heavily on my shoulders, I am also greatly looking forward to working with the Bank of Korea’s staff, who possess both outstanding ability and humility. Moreover, by learning much from the insight and experience of the Governor and fellow committee members, whom I have respected for a long time, I believe I can fulfill my duties to the best of my ability. During my term, I will work hard to contribute to the sound development of the national economy together with you all.

Thank you.

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