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

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

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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 agreed, stating, "Let us manage fiscal policy and monetary policy in harmony."

At a breakfast meeting held at the Bankers Club of the Federation of Banks on this day, Deputy Prime Minister Koo and Governor Shin said, "Given the heightened downside risks to the economy and rising inflation due to continued uncertainty from the Middle East conflict, high oil prices, and supply chain instability, let us manage fiscal policy and monetary policy in a coordinated manner based on a thorough assessment of the economic situation."

This meeting served as an introductory gathering, taking place two days after Governor Shin assumed office on the 21st. Deputy Prime Minister Koo emphasized, "Close coordination is important as we implement fiscal and monetary policies. There is considerable volatility in the financial markets. In particular, with regard to the exchange rate, the Bank of Korea and the Ministry of Economy and Finance need to consult even more closely." He added, "We need to build growth potential through structural reform, and since the Bank of Korea has research capabilities, if you share your insights, we will work to improve as well." He further suggested, "Let the Bank of Korea and the Ministry of Economy and Finance meet and communicate frequently."

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

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The Ministry of Economy and Finance stated that during this meeting, the two officials shared their views on the recent economic situation, where downside risks and inflationary pressures are rising due to the Middle East conflict, and discussed policy responses going forward. They agreed to continue their cooperation to stabilize the financial and foreign exchange markets, where high volatility persists, and to actively promote the internationalization of the won through initiatives such as establishing a 24-hour foreign exchange market and building an offshore won settlement system.

They also discussed not only overcoming the current crisis but also the direction for advancing major agendas, including expanding growth potential, addressing polarization through structural reform, and promoting key initiatives such as artificial intelligence (AI), green transition, and a super-innovative economy. Deputy Prime Minister Koo and Governor Shin decided to continue communication through existing channels such as market monitoring meetings, and to meet as needed for candid discussions to further strengthen their cooperation.

After the meeting, Governor Shin told reporters that the first quarter GDP growth rate far exceeded projections, saying, "I believe it demonstrates the resilience of the Korean economy." When asked whether they had discussed the exchange rate, he said only, "We spoke about it in broad terms."

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