Lee Chang-yong "High Uncertainty Continues This Year... Financial Experts Must Gather Wisdom"

Governor Lee Chang-yong's New Year's Address at the Pan-Finance New Year's Gathering

Bank of Korea Governor Lee Chang-yong is explaining the operation status of the price stability target at the 2022 second half inflation briefing held at the Bank of Korea press room in Jung-gu, Seoul on the morning of December 20 last year. [Image source=Yonhap News]

Lee Chang-yong, Governor of the Bank of Korea, said on the 3rd, "High domestic and international uncertainties are expected to persist this year," adding, "The Bank of Korea will do its best to implement sophisticated policy responses in cooperation with the government to contribute to the smooth landing of the Korean economy."

Governor Lee made these remarks at the '2023 Pan-Financial New Year's Meeting' held at Lotte Hotel in Seoul, stating, "The environment surrounding our economy does not look easy at all."

He emphasized, "While maintaining a monetary policy stance focused on price stability, we will also pay attention to changes in the economy, financial and foreign exchange market conditions," and added, "If necessary, we will take proactive market stabilization measures and closely communicate and cooperate with relevant authorities."

Governor Lee explained that although our economy is going through a difficult situation, there are also hopeful aspects to be found within it.

He said, "The external soundness of our economy has improved compared to the past," and added, "Last year, the exchange rate surged sharply, raising concerns among some that a past crisis situation might be repeated. However, thanks to improvements in the risk management system through overcoming various crises, the exchange rate stabilized, easing instability in the foreign exchange sector."

He continued, "Although the trade balance deficit may widen temporarily due to the deterioration of overseas economies, our exports last year reached an all-time high," and added, "We expect the trade balance to improve rapidly once external conditions recover, such as changes in China's COVID-19 situation."

Governor Lee also emphasized that research on digital currencies (CBDC) will accelerate in the new year. He said, "In the mid to long term, as digital financial innovation accelerates, we will continuously strive to improve the payment system and enhance safety to support digital platforms and new financial infrastructure, including research and development on CBDC."

He further explained, "As real estate-related finance takes different forms, we must gather wisdom together with policymakers and financial experts to prevent it from becoming a weak link in our economy again," and added, "Also, it is important to keep in mind that the role of the financial industry in channeling funds into more productive areas is crucial for maintaining the dynamism of the Korean economy, which is facing aging."

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