Lee Chang-yong "Monetary Policy Decision Not Easy Due to Three Risks"

Mention of US Monetary Policy, Ukraine, and Chinese Economic Variables

Lee Chang-yong, the nominee for Governor of the Bank of Korea, is returning to the country through Terminal 2 of Incheon International Airport on the 30th. Photo by Moon Ho-nam munonam@

[Asia Economy Reporter Seo So-jeong] "The three risks of U.S. monetary policy normalization, the Ukraine crisis, and China's economic slowdown make monetary policy decisions difficult."

On the 30th, Lee Chang-yong, the nominee for Governor of the Bank of Korea, who returned through Incheon International Airport, expressed the difficulties in policy decisions when asked about the direction of monetary policy by reporters.

Lee began by saying, "Until I left (the U.S.), I was busy finishing work at the International Monetary Fund (IMF)," and explained, "According to the IMF report released the day before yesterday, there is a suggestion that if the three risks?the speed of U.S. monetary policy normalization, the direction of the Ukraine crisis, and the economic slowdown in China due to COVID-19?materialize, it will not be easy to make policy decisions. All three have materialized, and I returned home while discussing changes to the report."

Lee said, "The Bank of Korea's decision (to keep interest rates unchanged) until February was made under the assumption that the Ukraine crisis would not escalate into a full-scale war, so we need to discuss with the Monetary Policy Committee members and Bank of Korea experts how these new changes will affect the domestic economy to understand the results."

When asked about his feelings on being nominated as the Bank of Korea Governor, Lee said, "Personally, it is an immense honor, but I feel a heavy responsibility as the global economic conditions are rapidly changing, and I may be entrusted with an important role," adding, "I will undergo verification through the confirmation hearing to prove that I am suitable for this important position."

When further questioned, he said, "Since I am still a nominee, I must be cautious," and added, "I will answer detailed questions during the confirmation hearing," withholding further comments.

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