Finance minister, BOK chief stress coordination to address uncertainties

South Korea's Finance Minister Lee Hyoung-il and Bank of Korea Governor Shin Hyun-song met on Monday to discuss strengthening coordination in the face of economic uncertainties, the finance ministry announced. Lee, who assumed office recently, held his first meeting with Shin since stepping into his role at the Ministry of Finance and Economy.

During their discussion, both policymakers agreed that South Korea's economic growth is accelerating, fueled by robust export and investment figures amid the semiconductor boom. However, they also recognized ongoing pressures on people's lives due to heightened external risks, such as central bank rate increases in major economies and geopolitical tensions.

Lee and Shin emphasized the growing interconnectivity between financial, foreign exchange, and property markets, highlighting the necessity for closer cooperation between their institutions to preemptively tackle economic risks. To achieve this, Lee advocated for enhanced communication between the finance ministry and the BOK to jointly pursue their common objectives of price stability, economic expansion, and financial stability.

In response, Shin stressed the critical importance of maintaining macroeconomic stability through stable consumer prices and resilient financial markets, laying the foundation for sustainable growth in an environment characterized by rapid change.