Choo Kyung-ho and Lee Chang-yong: "Economy is Serious... Comprehensive Policy Response Needed for Rapid Inflation Surge"

First Official Meeting After Choo Kyung-ho and Lee Chang-yong's Inauguration

Deputy Prime Minister and Minister of Economy and Finance Choo Kyung-ho and Bank of Korea Governor Lee Chang-yong are attending a breakfast meeting held at the Press Center in Jung-gu, Seoul, on the morning of the 16th and are taking a commemorative photo. Photo by Kim Hyun-min kimhyun81@

[Asia Economy Sejong=Reporters Kwon Haeyoung and Moon Jewon] Deputy Prime Minister and Minister of Economy and Finance Choo Kyung-ho and Bank of Korea Governor Lee Chang-yong recently agreed to strengthen policy coordination in response to economic uncertainties and instability in foreign exchange and financial markets. They particularly concurred on the need for comprehensive policy measures, as the recent surge in inflation could act as a macroeconomic burden.

On the 16th, Deputy Prime Minister Choo and Governor Lee held their first official meeting since taking office at the Korea Press Center in Seoul, where they discussed the current economic situation and exchanged views on future policy directions and ways to enhance policy coordination. First Vice Minister of Economy and Finance Bang Gi-seon and Bank of Korea Deputy Governor Lee Seung-heon also attended.

Both sides shared a common understanding of the severe situation facing the Korean economy. The prolonged Ukraine crisis, monetary tightening by major countries, and expanding external uncertainties have significantly increased inflationary pressures, while heightened volatility in financial and foreign exchange markets has raised the possibility of economic slowdown.

They particularly agreed on the necessity of comprehensive policy responses to the rapid inflation surge. Given that high inflation is exacerbating difficulties in the livelihood economy and is likely to act as a macroeconomic burden, comprehensive policy measures based on a thorough review of the overall macroeconomic situation are essential.

Deputy Prime Minister Choo and Governor Lee also recognized that, to overcome the current situation, it is more important than ever to create an optimal policy mix through close consultation between the two institutions. They emphasized that strengthening policy coordination and enhancing policy credibility based on smooth communication between the government and the central bank will be the cornerstone of macroeconomic and financial market stability.

Furthermore, they agreed on the need to intensify efforts for bold policy shifts such as boosting private-sector-led economic vitality, structural reforms to improve productivity, strengthening social safety nets, and enhancing fiscal soundness.

Going forward, both sides will frequently arrange informal meetings and reinforce official consultative bodies to expand opportunities for sharing economic outlooks and research capabilities between the two institutions. Additionally, they will establish and diversify communication channels among working-level officials through sector-specific meetings and seminars, as well as promote personnel exchanges.

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