Bank of Korea Governor: Further appreciation of the South Korean won is beneficial to the economy, and the central bank will maintain a restrictive monetary policy.

Bank of Korea Governor Rhee Chang-yong stated that further appreciation of the South Korean won would be beneficial, noting that the currency’s sharp rise since the BOK shifted to a tightening monetary policy has boosted household purchasing power. During a conversation with Krishna, director of the IMF’s Asia and Pacific Department, on the sidelines of the annual meetings of the International Monetary Fund and World Bank in Bangkok on Tuesday, Rhee said: “We will maintain a restrictive monetary policy stance until we are confident that inflation will return to the target level in a timely manner.” Rhee added that a stronger won has tilted economic growth momentum more toward the domestic sector, helping to ease development gaps in what he termed the “K-shaped economy”. He further noted that inflation, exchange rate, and financial stability factors are currently aligning with the same policy direction, making the policy trade-offs facing the Bank of Korea easier than usual.