South Korean Central Bank to roll out measures to curb Inflation

South Korea and its central bank governor announced on January 3 that the monetary board will adopt an inclusive policy to complete the "last mile" fight against inflation. The Bank of Korea will complete the last phase of the fight against inflation through a precise policy mix and maintain balance. Bank of Korea Governor Lee Chang-yong said this in his New Year's speech.

In addition, we must be fully prepared for the financial instability resulting from the continued tightening of monetary policy.

Prime Minister Syngman Rhee said the central bank will work with the government and financial institutions to address recent red flags in the housing and property sectors. Since the Bank of Korea last raised interest rates in January 2023, the policy rate has remained at 3.5%, the highest since late 2008.

At the top of the Bank of Korea's management is the Geumnyeong Monetary Policy Committee. The primary function of the committee is to establish monetary and credit policy. In addition, they discuss and resolve critical issues related to the Bank of Korea's business.

The Monetary Policy Committee has seven members representing different sectors of the national economy. 1) Ex-officio Governor, 2) Ex-officio Vice-Governor, 3) 1 member recommended by the Minister of Strategy and Finance, 4) 1 member recommended by the Provincial Governor, 5) 1 member recommended by the President of the Fiscal Services Commission, 6) Member recommended by the President of the Korea Chamber of Commerce and Industry 1 person 7) 1 member recommended by the President of the Korea Bank Federation.