S.Korea nominates pro-govt economist as c.bank board member (updated)

Shinsung Tongsang Co

26/07/2022 08:11

(Adds details)
    By Cynthia Kim and Seunggyu Lim
    SEOUL, July 26 (Reuters) - The Korea Federation of Banks on
Tuesday named a pro-government economist who helped the new
administration brainstorm financial policies to the board of the
central bank, as the Bank of Korea continues policy tightening
to quell inflation.
    Shin Sung-hwan, a veteran economist and management school
professor at Hongik University in Seoul, is expected to join the
Bank of Korea's seven-member board to replace Lim Ji-won, whose
term as a board member ended recently. Shin will be formally
appointed by President Yoon Suk-yeol.
    The announcement comes as the central bank is set to deliver
more interest rate hikes in the weeks ahead.
    The central bank has raised rates a total of 125 basis point
since mid-last year, as Governor Rhee Chang-yong emphasised the
importance of prioritising the fight against inflation. 
    The seven board members including Shin will also be
reviewing the pace of policy tightening towards the end of this
year, as the country's trade deficit has ballooned to a record
while business activity is slowing. 
    Shin, a graduate of the Seoul National University with a Ph.
D. in finance from the Massachusetts Institute of Technology,
has been a professor at Hongik University for more than two
decades.
    He has been critical of real estate and other economic
policies of the former administration of Moon Jae-in, and has
advised the Yoon government to deregulate rules to spur
corporate investment and boost growth. 
    "Having a board member who has formerly served on the Yoon
government's presidential transition committee means the
government could eventually have more say on (monetary policy),"
a local fixed-income dealer said.
    "This could be meaningful for the board to have a
pro-government voice, especially as policy priorities could
change from inflation to managing growth risks."
    


 (Editing by Jacqueline Wong)
 ((Cynthia.Kim@thomsonreuters.com; 822 3704 5655; Reuters
Messaging: cynthia.kim.thomsonreuters.com@reuters.net))