Jang Yongseong, Member of the Monetary Policy Committee, "Climate Change, a Key Variable in the Real Economy and Financial System"

Welcome Address at the Joint Symposium of Bank of Korea and Korean Economic Development Association

Jang Yong-seong, a member of the Monetary Policy Committee of the Bank of Korea, emphasized on the 12th that “climate change has established itself as a key variable significantly impacting the real economy and financial system,” and stated, “All economic agents, including corporations, households, and financial institutions, must prepare for this challenge.”

On the same day, Jang attended a symposium titled “Economic Impacts and Responses to Climate Change, and the Role of Central Banks,” jointly hosted by the Bank of Korea and the Korean Economic Development Association, held at the conference hall on the 2nd floor of the Bank of Korea annex in Jung-gu, Seoul, where he delivered a welcoming address.

He said, “This summer was the hottest in Earth's history, and the heavy snowfall in Seoul at the end of November was the highest since observations began in 1907. More severe weather changes are expected every year going forward,” adding, “Policy authorities bear the responsibility to devise strategies and solutions for an orderly transition to a carbon-neutral economy.”

However, he stressed that the process of addressing climate change remains challenging. He explained, “The costs required for climate change response must be incurred immediately, but the benefits appear far in the future, creating a temporal mismatch problem that makes it difficult to achieve full social consensus domestically. Internationally, while active global cooperation is essential for climate change response, the interests of each country sharply conflict regarding the scale and speed of greenhouse gas reductions.”

He continued, “The Bank of Korea has also been actively pursuing its role in responding to climate change,” and added, “I hope this event will serve as an important forum that goes beyond mere academic discussion, recognizing the importance of climate change response and addressing the related economic and financial challenges.”

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