Transition Team and Bank of Korea Hold Private Meeting: "Need to Find Policy Mix for Price Stability and Economic Recovery"

President-elect Yoon Suk-yeol is answering questions from the press at the 3rd Cabinet Announcement held at the 20th Presidential Transition Committee in Tongui-dong, Seoul, on the 14th. / Photo by Transition Committee Press Corps

The Presidential Transition Committee met with officials from the Bank of Korea on the 15th to discuss measures to respond to the recent sharp rise in inflation.

The Transition Committee and the Bank of Korea agreed that the macroeconomic situation the Yoon Suk-yeol administration will face is challenging, and decided to strengthen communication regarding the policy mix that appropriately combines monetary and fiscal policies going forward.

On the afternoon of the 15th, the Transition Committee's Economic Division 1 Secretary Choi Sang-mok, members Kim So-young and Shin Sung-hwan, and others met with Bank of Korea officials at the Transition Committee office in Tongui-dong, Jongno-gu, Seoul, for a briefing on current issues. From the Bank of Korea, Deputy Governor Lee Seung-heon, the relevant deputy governors, and directors attended.

The Transition Committee explained, "Ahead of the new government's launch, we reviewed the domestic and international macroeconomic conditions surrounding our economy and trends in the financial and foreign exchange markets, focusing discussions on risks such as household debt, supply chain disruptions, and the situation of the Chinese economy."

They added, "We also discussed Bank of Korea-related issues such as preparations for the introduction of CBDC (Central Bank Digital Currency) in anticipation of the digital economy transition and the Bank of Korea's role in responding to climate change."

In particular, the Transition Committee and the Bank of Korea exchanged views on the recently growing concerns about inflation.

The Transition Committee stated, "Participants shared the recognition that inflationary pressures are significantly increasing due to the Ukraine war and global inflation, and that the downside risks to the domestic and international economy are expanding, making the macroeconomic conditions the new government will face quite challenging."

They continued, "The Transition Committee members emphasized that especially at times like these, it is important for the Bank of Korea and the government to work together to find the optimal policy mix for economic recovery and price stability, and that more communication is necessary."

The Transition Committee added, "They requested the Bank of Korea's active interest and in-depth research on measures to mitigate the impact on vulnerable sectors during the monetary policy normalization process, as well as on various current issues and mid- to long-term tasks facing our economy."

Following the consumer price index exceeding 4% last month and the rising trend continuing, President-elect Yoon Suk-yeol and the Transition Committee recently began reviewing measures to address the cost of living for ordinary citizens.

In addition to the Bank of Korea, the Transition Committee held successive meetings with the Financial Services Commission and the Financial Supervisory Service to discuss countermeasures. On the same day, Won Il-hee, the Transition Committee's senior deputy spokesperson, said at a press conference at the Transition Committee office in Tongui-dong, Jongno-gu, Seoul, "Following President-elect Yoon Suk-yeol's urgent directive this morning, an emergency meeting of Economic Division 1 and the Financial Services Commission and Financial Supervisory Service was held from 1:30 p.m."

At the Transition Committee secretariat meeting that morning, President-elect Yoon emphasized, "Signs of a complex crisis in our economy are clear, and especially inflation is serious," adding, "We must establish comprehensive measures to improve the economic structure, including stabilizing prices, in preparation for prolonged inflation."

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