Seoul, Sep 28 (IANS) South Korea’s finance minister met with the central bank governor on Monday to discuss ways to strengthen coordination to address economic uncertainties, the finance ministry said.
Finance Minister Lee Hyoung-il, who took office last week, held talks with Bank of Korea (BOK) Gov. Shin Hyun-song during his first visit to the central bank since taking office, according to the Ministry of Finance and Economy.
“We consider (the BOK) an important policy partner in discussions on economic stability and growth,” said Lee, who wore a blue tie that’s available as a souvenir at the central bank, reports Yonhap news agency.
“We hope to jointly explore and cooperate on a range of issues, including the internationalisation of the Korean won, digital finance, and ways to expand the economy’s growth potential and ensure the benefits of growth are more widely shared,” the finance minister added.
The meeting lasted around 40 minutes. During the meeting, the two policymakers shared the view that South Korea’s economic growth is gaining momentum, supported by strong export and investment indicators amid the semiconductor supercycle.
Lee and Shin, however, noted persistent pressure on people’s livelihoods amid heightened external uncertainties, including interest rate hikes in major economies and geopolitical risks.
“The BOK’s recent monetary policy response is expected to contain demand-side inflationary pressures and bolster confidence in the South Korean economy, helping stabilise the exchange rate and ease cost pressures, thereby strengthening the country’s economic fundamentals,” Shin said.
“The BOK’s efforts to maintain macroeconomic stability, together with the government’s policy efforts to expand the economy’s growth potential, will play a key role in strengthening the foundation for sustainable growth,” Shin added.
The two men said financial, foreign exchange and property markets are becoming increasingly interconnected, stressing the need for closer cooperation between their institutions to address economic risks preemptively.
To this end, Lee called for greater communication between the finance ministry and the BOK to pursue their shared goals of price stability, economic growth and financial stability.
—IANS
na/