Shin Hyunsong: "April Rate Decision Well-Suited to Current Situation... Seven Consecutive Holds Are Strategic Patience"

April 15 Confirmation Hearing for Bank of Korea Governor Nominee

Shin Hyun-song, nominee for Governor of the Bank of Korea, stated that the current base interest rate (annual 2.50%) "is quite appropriate for the current situation." Regarding the Bank of Korea's decision to hold the base rate steady for seven consecutive times, he described it as an act of "strategic patience."

Shin Hyun-song, nominee for Governor of the Bank of Korea, is attending a confirmation hearing held on the 15th at the National Assembly's Planning and Finance Committee, responding to questions from assembly members.

At the confirmation hearing held by the National Assembly's Finance and Economy Committee on April 15, Shin responded to a request from Assemblyman Cho Incheol of the Democratic Party of Korea to evaluate this month's Monetary Policy Board decision (maintaining the rate at 2.50%), saying "Given the high uncertainty related to the situation in the Middle East, it was an appropriate decision." He explained that, since monetary policy could be influenced by how the Middle East situation unfolds and how long it lasts, it is difficult to move policy decisively in either direction at this time.

In response to criticism that "holding the rate steady for seven times in a row amounts to doing nothing," Shin said, "It cannot be considered a passive act just because the rate has not changed," adding, "I believe this can be seen as strategic patience."

When asked if special measures were needed to stabilize the exchange rate, he replied, "We all need to think about the exchange rate," and added, "There are structural issues, temporary risk aversion, and aspects of the system itself that need to be reconsidered."

He explained that, if appointed Governor of the Bank of Korea, he would pursue innovation, internationalization, and macroprudential stability in tandem as a key initiative to ensure stability in the foreign exchange market. Shin emphasized, "(This work) may not be completed within four years, but taking the first step is important," and announced that he would make various efforts to internationalize the Korean won, such as implementing institutional reforms to facilitate Korea's inclusion in the MSCI Developed Markets Index.

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