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Nominee for Bank of Korea governor confirmed

Updated: 2014-03-20 04:58:42 (KST)
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Lee Ju-yeol -- a veteran Bank of Korea official tapped as its next governor -- appeared for a parliamentary confirmation hearing on Wednesday.
He said the central bank should focus not only on the nation's inflation rate, but also on growth.
Lee, however, dismissed market expectations of a rate cut.


"Inflation is not a major threat to the Korean economy now, so it's right to focus on growth. But the current interest rate level does not seem to be an obstacle in the nation's economic recovery."


"Experts say his comments are realistic, with many believing the rate has been kept at low levels for too long.
They predict the central bank could act on it in the coming months.

"Eventually when the central bank of industrialized countries, especially the U.S.A, show the symptom of increasing the interest rate then, Bank of Korea will also make a move -- the move of increasing interest rate."

During the hearing, Lee also said that he fully acknowledges the importance of communicating with the market.
He added that the central bank has to regain the trust of the people.
Lee also conceded that the central bank did not communicate effectively with the market last April when it kept its key rate unchanged.


"The market had high expectations of a rate cut and that's because the central bank had sent signals to the market. I believe there was a problem in communication."

Lee's confirmation hearing went smoothly with no major moral issues setting his appointment back.
Right after the hearing lawmakers accepted his nomination, which is very unusual.
Lee takes office April 1st, replacing outgoing governor Kim Choong-soo.
Hwang Ji-hye, Arirang News.


Reporter : emilyfwang@arirang.co.kr

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