ⓒYONHAP News

New BOK Governor Raises Need for Balancing Growth and Inflation

The central bank has a new governor, and he sees the South Korean economy at a major turning point, and said it is difficult to predict whether it will take another leap forward or fall into a trap of long-term low growth.

 

In his inauguration speech at the BOK headquarters in Seoul on Thursday, Rhee Chang-yong projected that economic recovery will fall short of previous expectations amid growing inflationary pressure.

 

The new BOK chief raised the need to strike a delicate balance between growth and prices at a time when their “trade-off” is restricting management of monetary policy.

Rhee called for a bold change in the nation's economic policy framework, in order to take a leap forward rather than veer toward a stalled growth. 

He added that the Korean economy should seek creative and qualitative growth led by the private sector.