Shin Hyun-song, nominee for Bank of Korea governor, apologized on April 15 at a National Assembly confirmation hearing for controversies over his family's nationalities and property holdings. He acknowledged the Korean won's recent weakness but stated the country has ample dollar liquidity to buffer shocks. Amid Middle East tensions, he said monetary policy should prioritize inflation.
Shin Hyun-song, an Oxford-educated economist and former senior official at the Bank for International Settlements (BIS), apologized during the April 15 National Assembly confirmation hearing for failing to handle administrative procedures properly while living abroad long-term. "It was my fault... I sincerely apologize for causing concern to the public over personal matters," he said.
Allegations include not reporting his daughter's loss of South Korean citizenship in 1999 after acquiring British nationality and falsely registering her as a domestic resident in a Gangnam apartment two years ago. He owns three homes in and outside South Korea, made a 2.2 billion-won gain from a 'gap-investment' apartment, and allowed his mother to live rent-free. His spouse holds U.S. citizenship, and his eldest son renounced South Korean citizenship before age 18, forgoing mandatory military service. "There was no intentional wrongdoing... If I take office, I will promptly address all outstanding issues," Shin said. He reported combined family assets of 8.24 billion won ($6.1 million), over 90% in overseas financial assets, but has sold a significant portion.
On the economy, Shin noted the won-dollar rate stayed high around 1,500 recently before easing to 1,450 amid Middle East conflict-driven oil price rises. Offshore non-deliverable forward (NDF) trading contributed to depreciation in a 'tail wagging the dog' effect. He pledged to promote won usage globally and build an offshore settlement system.
The Bank of Korea held its benchmark rate at 2.5% last week in 'strategic patience.' Shin said monetary policy centers on price stability, prioritizing inflation given Korea's oil sensitivity if Middle East risks persist. Stagflation risk is low, with semiconductors, a supplementary budget, and AI positioning growth promising long-term. He is tapped to replace outgoing Gov. Rhee Chang-yong, whose term ends Monday.
