Lee Chang-yong, Bank of Korea Governor, and Kim Ju-hyun, Financial Services Commission Chairman, Hold First Meeting... "Strengthening Policy Coordination"

[Asia Economy Reporter Seo So-jeong] On the 18th, Lee Chang-yong, Governor of the Bank of Korea, and Kim Ju-hyun, Chairman of the Financial Services Commission, held their first meeting at the Bank of Korea headquarters and agreed to strengthen policy cooperation.

The Bank of Korea announced on the 18th that Governor Lee and Chairman Kim agreed to make every effort to secure macroeconomic and market stability through proactive policy responses to the current economic and financial conditions, such as accelerating inflation, increased downside risks to the economy, and heightened volatility in financial and foreign exchange markets.

First, to ensure that monetary policy and financial policy operate harmoniously, the two institutions will strengthen their cooperation.

In the event of significant market volatility, they plan to continuously conduct joint inspections of financial sector-specific and systemic risks to implement market stabilization measures in a timely manner.

They also agreed to work together to reduce the burden on vulnerable households and marginal companies to prevent latent insolvencies in vulnerable sectors from materializing and threatening the stability and soundness of the financial market, as well as to cooperate on restructuring and improving the quality of household debt.

Furthermore, the two heads agreed to closely examine the ripple effects of the digitalization of the financial industry and actively cooperate in identifying and responding to new risk factors.

The Bank of Korea stated, "Going forward, the Chairman of the Financial Services Commission and the Governor of the Bank of Korea will frequently arrange opportunities to meet informally and will also strengthen communication channels among working-level officials."

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