New Finance Minister, BOK Chief to Discuss Pending Issues | Be Korea-savvy

New Finance Minister, BOK Chief to Discuss Pending Issues

New Finance Minister Yoo Il-ho (Image : Yonhap)

New Finance Minister Yoo Il-ho (Image : Yonhap)

SEOUL, Jan. 13 (Korea Bizwire)South Korea’s new finance minister and the central bank chief will have their first meeting later this week to share their views on the economy in the face of falling oil prices and a Chinese rout, the Bank of Korea (BOK) said Wednesday.

Finance Minister Yoo Il-ho, who took office Wednesday, will meet with BOK Gov. Lee Ju-yeol on Friday in Seoul to discuss ways to tide over issues facing the Korean economy through fiscal and monetary policies.

In the recent few years, the meeting of the two economic leaders has drawn media attention as many speculate that the finance minister’s pro-growth push may have pressured the central bank to cut the base rate to a record low of 1.5 percent.

During his confirmation hearing, Yoo, a researcher-turned-politician, said that he wants to make more opportunities to share views with the central bank, stressing that the BOK is fully authorized to decide the base rate.

Market watchers, however, said that there can be a bit of friction between the two agencies in case of an additional rate hike by the United States in the coming future.

The BOK will consider following the U.S. move, while Yoo will take an expansionary approach to prop up the economy.

The upcoming Yoo-Lee gathering will be held a day after the BOK’s first rate-setting meeting of the year, which is widely expected to freeze the key rate at 1.5 percent.’


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