On September 28, Deputy Prime Minister and Minister of Finance and Economy Lee Hyoung Il visited the Bank of Korea (BOK) and met with BOK Governor Shin Hyun Song. The visit took place just six days after Deputy Prime Minister Lee took office on September 22, as the heads of Korea’s economic and monetary policy authorities shared the view that closer communication and cooperation among relevant authorities were needed amid heightened financial market volatility and external uncertainties than in the past.

Deputy Prime Minister Lee and Governor Shin noted that economic indicators, including exports and investment, have remained strong, supported in part by robust semiconductor performance, contributing to strengthen growth momentum. At the same time, external uncertainties remain elevated due to factors such as rising interest rates in major economies and geopolitical risks, while pressures on people’s livelihoods persist at home. They also agreed that financial, foreign exchange (FX) and real estate markets are becoming increasingly interconnected. Against this backdrop, the two institutions should further strengthen their cooperation framework to detect risk factors early and respond preemptively, taking a comprehensive view of overall economic conditions rather than focusing solely on macroeconomic indicators.

To this end, Deputy Prime Minister Lee proposed that the two institutions ➊communicate more closely and explore ways to ensure harmonious economic and monetary policy implementation in pursuit of their shared goals of price stability, growth and financial stability; and ❷enhance their cooperation framework for integrated monitoring of financial, FX and asset markets and early policy responses. He also called on the two institutions to ❸take a longer-term perspective in jointly addressing future challenges, including the internationalization of the Korean won and digital finance, as well as exploring ways to raise Korea’s potential growth rate and ensure that the benefits of growth are more widely shared. In response, Governor Shin emphasized that overall macroeconomic stability, underpinned by price and financial stability, is essential to laying the foundation for sustainable growth amid a rapidly changing environment. He also underscored the need for close communication and cooperation between the two institutions in achieving this goal.

Following the visit, the two sides agreed to continue their communication and collaboration through various channels, including existing mechanisms such as market situation review meetings.

Please refer to the attached files.