New Bank of Korea Governor Shin Hyun-song and Finance Minister Koo Yun-cheol agreed on Thursday to bolster policy coordination amid market volatility from the Middle East crisis during their first meeting in Seoul. They emphasized the need for aligned monetary and fiscal policies amid tensions between growth and inflation. Discussions will continue on foreign exchange stability and structural reforms.
Bank of Korea Governor Shin Hyun-song and Finance Minister Koo Yun-cheol held their first meeting Thursday at the Bankers' Association Building in Seoul, just two days after Shin took office on Tuesday.
The two officials agreed to enhance coordination between monetary and fiscal policies amid ongoing financial market volatility triggered by the Middle East crisis. Shin said, "As the situation in the Middle East is still unfolding, and given the tension between growth and inflation, monetary and fiscal policies need to be conducted in a coordinated manner."
Shin added, "I am very pleased to have this opportunity to directly share our assessments of the economic situation. I will stay in frequent contact to discuss current issues, as well as institutional improvements and structural reform."
Koo stressed close communication, noting, "The foreign exchange market, in particular, requires closer coordination between the BOK and the finance ministry." He also said, "Structural reform is needed to boost potential growth. As the BOK has research capabilities, we will make good use of your input and suggestions."
The central bank described the agreement as a foundation for stabilizing markets and supporting economic growth.
