Deputy Prime Minister and Bank of Korea Governor Meeting  

Deputy Prime Minister and BOK Governor Agree to Strengthen Policy Coordination

Deputy Prime Minister Choo Kyung-ho held a meeting with Bank of Korea Governor Rhee Chang-yong on May 16 to discuss the current economic situation and to work on policy coordination to cope with ongoing economic challenges. 

The following is a summary of the meeting.

Current economic situation

The two leaders agreed on the need for comprehensive policy measures with a close examination of the overall macroeconomic situation as the price rises are more likely to pose threats to both people’s livelihood and macroeconomic stability.

Also, in the mid-to-long term, there are increasing concerns about worsening polarization and higher sovereign and household debt levels with the economy stalled amid low growth due to changes in demographics and industrial structures, and government-led economic policies.

The two also saw eye to eye on stronger policy efforts to enhance the economy’s social safety nets and fiscal soundness, along with forward-going policy shifts such as structural reforms that aim to boost private-led economic activities and increase productivity. 

Policy Coordination

The two leaders agreed that creating a good ‘policy mix’ built on stronger coordination is needed to tackle the ongoing economic challenges. In particular, they highlighted that strengthening policy coordination based on effective communication and raising policy credibility will lay the groundwork for macroeconomic and financial stability. 

The two suggested ways to communicate and cooperate better.

- Hold frequent informal meetings between the two leaders 

- Reinforce official consultative councils[1] to share views of the economic situation and improve research capabilities

- Build a communications channel to foster working-level discussions and expand personnel exchanges