Bank of Korea Governor: "Potential Growth Rate Can Be Raised Through Structural Reform"

by Lee Changhwan

Published 22 Feb.2024 12:24(KST)

Lee Chang-yong, Governor of the Bank of Korea, is presiding over the Monetary Policy Direction Decision Meeting of the Monetary Policy Committee held at the Bank of Korea in Jung-gu, Seoul, on the morning of the 22nd. Photo by Joint Press Corps

Lee Chang-yong, Governor of the Bank of Korea, stated that Korea's potential economic growth rate could increase through structural reforms.

At a press conference held after the Monetary Policy Committee decided to keep the base interest rate unchanged on the morning of the 22nd, Governor Lee said, "We currently estimate Korea's potential growth rate to be around 2%," adding, "We expect to announce a new figure at some point in the second half of the year."

He said, "If aging is not managed properly, there is a possibility that the potential growth rate could turn negative," and added, "It could change depending on the policies implemented going forward."

He continued, "We should not accept the direction of declining below 2% due to aging and other factors," explaining, "I believe there is significant room to raise it through efforts."

Governor Lee also added, "I hope to build a national consensus on how to raise the potential growth rate through structural efforts."

Regarding overseas real estate investment, Governor Lee said, "It is true that there is some exposure, but it accounts for a very small portion of total assets," and added, "I do not see it as a situation that would cause systemic risk."