Koo Yoon-chul and Shin Hyun-song Hold First Meeting: "Harmonious Operation of Fiscal and Monetary Policy...Frequent Communication"

First Official Meeting at Breakfast

Discussing Inflation Risks from Middle East Conflict and Stabilization of the Foreign Exchange Market

Deputy Prime Minister and Minister of Economy and Finance Koo Yoon-chul and new Bank of Korea Governor Shin Hyun-song are posing for a commemorative photo on the 23rd at the Federation of Banks in Jung-gu, Seoul. This is their first official meeting two days after Governor Shin's inauguration. Ministry of Economy and Finance

Deputy Prime Minister and Minister of Economy and Finance Koo Yoon-chul and Bank of Korea Governor Shin Hyun-song met on the 23rd. This marks their first official meeting two days after Governor Shin's inauguration. Both officials emphasized, "Let us work together to harmoniously coordinate fiscal and monetary policy."

At a breakfast meeting held at the Bankers Club in the Federation of Banks building, Deputy Prime Minister Koo and Governor Shin stated, "With heightened downside risks to the economy and rising inflation due to continued uncertainties stemming from the Middle East war, high oil prices, and supply chain instability, it is important to closely monitor economic conditions and harmoniously coordinate fiscal and monetary policy."

This meeting served as the first formal introduction since Governor Shin's inauguration on the 21st. Deputy Prime Minister Koo commented, "Close consultation is essential as we implement fiscal and monetary policies. There is significant volatility in the financial markets. In particular, exchange rates require more precise coordination between the Bank of Korea and the Ministry of Economy and Finance." He continued, "We must enhance growth potential through structural reform, and since the Bank of Korea has research capabilities, we would welcome your input and strive to do our best." He added, "Let us ensure regular meetings and communication between the Bank of Korea and the Ministry of Economy and Finance."

Governor Shin also remarked, "It is very meaningful to have an opportunity to directly share perspectives on the economic situation," adding, "Going forward, I will reach out frequently to discuss not only current issues but also short-term institutional reforms and structural reform matters."

The Ministry of Economy and Finance reported that during this meeting, the two leaders shared their views on the current economic situation, where downside risks and inflation are elevated due to the Middle East war, and discussed future policy responses. They agreed to continue cooperation to stabilize the highly volatile financial and foreign exchange markets and to actively promote the internationalization of the Korean won through measures such as introducing 24-hour foreign exchange market trading and establishing an offshore won settlement system.

They also discussed strategies to address not only the immediate crisis but also to expand growth potential, resolve polarization, and pursue key initiatives, including structural reform, artificial intelligence (AI), the green transition, and the ultra-innovation economy. Deputy Prime Minister Koo and Governor Shin agreed to maintain communication through existing channels such as market monitoring meetings and to further solidify cooperation by meeting as needed for candid discussions.

After the meeting, Governor Shin told reporters that the first-quarter GDP growth rate, which significantly surpassed projections, "demonstrates the resilience of the Korean economy." When asked whether the exchange rate was discussed, he replied only, "We talked about it broadly."

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