Shin Hyun-song takes office as Bank of Korea governor
April 21 (Asia Today) -- Shin Hyun-song took office Tuesday as governor of the Bank of Korea, pledging to pursue prudent and flexible monetary policy during what he described as a period of major transition in the global economy.
Shin, who begins a four-year term, said the central bank must respond at the same time to rising inflation risks, weaker growth and financial market instability.
In his inaugural address in Seoul, Shin said the Middle East war had pushed up international oil prices, increasing upward pressure on inflation while also weighing on the economy.
He said volatility in financial markets remained high and the risk of mounting financial imbalances had not eased.
Shin described the current period as a major turning point in the global economic order, shaped by geopolitical conflict and rapid advances in artificial intelligence. He said South Korea also faces weakening growth momentum because of demographic change, widening inequality and household debt.
He called for a broader approach to financial stability, saying traditional frameworks alone were no longer enough to detect and respond to systemic risks.
Shin said the Bank of Korea would strengthen its early warning capabilities by making more active use of market price indicators alongside existing measures of financial soundness. He also said the bank needed better access to information on the nonbank sector and a wider analytical scope covering off-balance-sheet transactions and nontraditional financial products.
He pledged to expand two-way communication with markets and to develop communication strategies better suited to South Korea's circumstances.
Shin also identified the internationalization of the won and digital financial innovation as key priorities. He said the central bank would pursue a 24-hour foreign exchange market and an offshore won settlement system as part of efforts to build a currency infrastructure that matches the country's economic standing.
He said the second phase of Project Hangang would be used to expand the use of central bank digital currencies and deposit tokens, while international cooperation including the Agora Project would help raise the won's profile in digital payments and settlement.
On management, Shin called for stronger cooperation across departments inside the central bank.
"I hope the various departments within the Bank of Korea will break down barriers and operate organically," he said. "Research and policy must complement each other and deepen together."
The National Assembly adopted a confirmation hearing report on Shin on Monday. He previously served as a professor at Princeton University and held senior research and monetary policy posts at the Bank for International Settlements.
-- Reported by Asia Today; translated by UPI
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Original Korean report: https://www.asiatoday.co.kr/kn/view.php?key=20260421010006518
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This story was originally published April 21, 2026 at 8:37 PM.