Choo Kyung-ho and Lee Chang-yong's First Meeting: "Serious Economic Situation, Important to Have a Good Policy Mix"

Deputy Prime Minister of Economy and Governor of the Bank of Korea, First Meeting Since Inauguration

Deputy Prime Minister and Minister of Economy and Finance Choo Kyung-ho is holding a joint briefing with related ministers on the '2022 2nd Supplementary Budget' at the Government Seoul Office in Jongno-gu, Seoul, on the 12th. Photo by Hyunmin Kim kimhyun81@

Deputy Prime Minister and Minister of Economy and Finance Choo Kyung-ho and Bank of Korea Governor Lee Chang-yong held their first meeting since taking office on the 16th and exchanged views on recent issues such as high inflation and high exchange rates. Amid ongoing U.S. tightening and the Ukraine crisis, the two agreed on the need for policy coordination.

Before the meeting with Governor Lee at the Korea Press Center in Jung-gu, Seoul, on the morning of the same day, Deputy Prime Minister Choo said, "The current economic situation is very severe, and policy tools are quite limited," adding, "More than ever, it is important to share economic situation awareness between the central bank and the government and to have a good policy mix."

Deputy Prime Minister Choo explained, "Although this is our first meeting, we met last Friday at the International Financial Center with the President and had various discussions, and we have met several times since May. We plan to meet frequently in the future so that meetings between the central bank governor and the deputy prime minister do not become news and to discuss economic matters."

Governor Lee said, "The various problems we face cannot be solved by the central bank or government ministries alone; policy coordination is necessary to find solutions," emphasizing, "Policy coordination is more important than ever."

Governor Lee added, "I agree with the Deputy Prime Minister's remark that meetings between the Deputy Prime Minister and the Bank of Korea Governor should not become news," and said, "We will strive to create good policies."

When asked whether this meeting was related to the Bank of Korea Monetary Policy Committee's interest rate decision in May, Deputy Prime Minister Choo said, "If we link every meeting to policy decisions, it will be difficult for us to meet," adding, "Interest rate decisions are entirely the responsibility of the central bank's Monetary Policy Committee."

Deputy Prime Minister Choo and Governor Lee are scheduled to exchange views on measures to stabilize prices and the foreign exchange market situation. While the Bank of Korea is maintaining a rate hike stance in line with the U.S. Federal Reserve's tightening, the government is pushing for an unprecedented supplementary budget, sparking controversy over a 'discordant rhythm.'

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