Kwon Min-soo, the new Deputy Governor of the Bank of Korea, stated that it is a time to make flexible decisions, taking into account the side effects of a rate hike.

On the day of his inauguration, 권민수, the newly appointed deputy governor of the Korean Bank, stated that adjusting interest rates would have intended effects but could also have undesirable consequences. He emphasized the need for a balanced, cautious, and flexible approach to policy decisions. The deputy governor expressed that both economic growth and inflation should be considered when determining interest rates, as well as financial stability.

He pointed out that the economy is showing growth beyond expectations, but inflation is exceeding targets, leading to financial imbalance risks rooted in household debts and housing prices. He noted the importance of taking into account currency fluctuations, geopolitical and trade risks. The deputy governor highlighted the need for a thorough macroeconomic analysis and improved monetary policy tools and market communication to better serve the dual roles of price and financial stability.

Regarding the weakening of the won against the dollar, he believed that the adjustment in the stock market could be the cause, and that downward trends in the fundamental level were expected. He also stated that the stock market's movements are uncertain and that the Middle East war adds to the volatility. The deputy governor stressed that it is impossible to ignore currency fluctuations in determining interest rates.

He further emphasized the importance of expanding the market, particularly through the internationalization of the won, as market size is often smaller than that of major economies like Samsung Electronics and SK Hynix. The appointment of 한은 part of the Morgan Stanley Capital International (MSCI) index has been largely resolved, and he expects progress in the second half of the year or early next year.

The deputy governor will join the Monetary Policy Direction Determination Committee starting 27th August, serving a three-year term until 20th August 2029.