[Exclusive] Deputy Prime Minister Choi Sang-mok to Visit Bank of Korea on 6th... Joint Discussion with Lee Chang-yong Scheduled

Unprecedented Joint Discussion by Fiscal and Monetary Authorities
Focus on Long-Term and Structural Issues Over Short-Term Matters
Topics Include Potential Growth Rate, Aging Population, and Birth Rate

Choi Sang-mok, Deputy Prime Minister for Economy and Minister of Strategy and Finance, will visit the Bank of Korea for the first time since his inauguration to meet with Governor Lee Chang-yong. The two leaders are also scheduled to hold a joint forum. This move is interpreted as a demonstration of their intention to collaboratively address Korea's structural issues beyond short-term coordination between fiscal and monetary authorities.

According to the Bank of Korea and the Ministry of Strategy and Finance on the 31st, Deputy Prime Minister Choi will visit the Bank of Korea headquarters in Jung-gu, Seoul, on the 6th of next month, accompanied by Yoon In-dae, Director General of Economic Policy Bureau, among others. Choi will meet with Governor Lee and tour the newly renovated Bank of Korea. Afterwards, the two heads are expected to select key economic issues and hold a joint forum. It is unprecedented for the two institutions to hold a forum together, which is considered exceptional. However, the decision on whether the forum will be open to the public has not yet been made.

The topic is expected to be timely yet focused on structural issues. A Bank of Korea official explained, “Compared to the past, the Ministry of Strategy and Finance and the Bank of Korea now share economic perceptions, so the discussion will focus more on long-term structural problems rather than immediate issues,” adding, “They will likely discuss topics such as restoring potential growth rate, responding to population aging, raising birth rates, and structural reforms.” A Ministry of Strategy and Finance official also hinted, “It will not be the topics we have discussed with the Bank of Korea so far, but entirely new subjects.”

The preparation for the event is being handled by the core policy departments of each institution. The so-called ‘F4 meetings,’ which are macroeconomic and financial issue briefings, have been coordinated by the Ministry’s Capital Market Division and the Bank’s Market Management Team. However, since this is a different type of event, the Ministry’s Comprehensive Policy Division, together with the Macroeconomic Policy Division, is carefully considering the schedule, participants, and forum topics. The Bank of Korea’s counterpart department in charge is the Research Bureau, which handles economic outlooks.

The dynamic between the Ministry of Strategy and Finance and the Bank of Korea has been growing increasingly close. In the past, meetings between the two leaders were so rare that they attracted significant market attention. This was because government officials have refrained from direct meetings to respect the independence of the central bank, which sets the base interest rate. The fact that there was no visit to the Bank of Korea for nine years after former Deputy Prime Minister Yoon Jeung-hyun in February 2009 was for the same reason.

The close cooperation between the two institutions began during former Deputy Prime Minister Choo Kyung-ho’s tenure. Choo emphasized coordination between the Ministry and the Bank and initiated the weekly weekend F4 meetings where economic and financial authorities gathered to share current issues. At the time, Choo explained the purpose of the F4 meetings to reporters, saying, “I will meet with the Bank of Korea governor so frequently that it will no longer be surprising news.”

Meanwhile, Deputy Prime Minister Choi, at his first press briefing since his appointment, expressed his intention to maintain communication with the Bank of Korea, saying, “I hope the financial situation stabilizes enough so that (F4 meetings) are not necessary, but that does not seem likely.” Regarding Governor Lee, he evaluated, “He is a senior from whom I learned a lot since university,” and added, “I expect smooth communication without any changes.”

Choi Sang-mok, Deputy Prime Minister for Economic Affairs and Minister of Strategy and Finance, is delivering a greeting at a meeting with small and medium-sized business owners held on the 11th at the Korea Federation of SMEs in Yeouido, Seoul. Photo by Jo Yong-jun jun21@

Lee Chang-yong, Governor of the Bank of Korea, is delivering opening remarks at a press conference related to the January Monetary Policy Committee interest rate decision held on the 11th at the Bank of Korea in Jung-gu, Seoul. Photo by Joint Press Corps

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