(LEAD) Finance minister, BOK chief stress coordination to address uncertainties

Seoul, on September 28, witnessed a crucial meeting between South Korea's Finance Minister, Lee Hyoung-il, and the Governor of the Bank of Korea (BOK), Shin Hyun-song. The finance minister's first visit to the central bank since assuming office highlighted the importance of coordination to tackle economic uncertainties, as per the Ministry of Finance and Economy.

Both ministers emphasized their shared commitment to economic stability and growth, expressing hope for joint efforts on various fronts, including internationalizing the won, digital finance, and expanding the economy's growth potential.

Despite acknowledging robust export and investment indicators, the ministers pointed out persistent pressure on citizens' lives due to external uncertainties such as interest rate hikes in major economies and geopolitical risks. Shin highlighted that the BOK's recent monetary policy response aimed at curbing demand-side inflation and boosting confidence was crucial in stabilizing the exchange rate and easing cost pressures.

The central bank's efforts in maintaining macroeconomic stability, coupled with the government's policies to boost the economy's growth potential, would significantly strengthen the foundation for sustainable growth, according to Shin. Both leaders also stressed the need for closer cooperation between their institutions to preemptively address economic risks, noting the increasing interconnectivity of financial, foreign exchange, and property markets.

Lee called for enhanced communication between the finance ministry and the BOK to achieve shared goals of price stability, economic growth, and financial stability.