Anna Jiwon Park has been covering the politics at The Korea Times since the summer of 2024, when she joined the press pool for the Office of the President in Korea. Prior to that, she spent about five years reporting extensively on financial markets, regulatory authorities and the financial industry. She joined The Korea Times in 2019 after spending eight years as a broadcast journalist at Arirang TV, Korea’s leading global broadcaster, covering politics, defense and culture.
BOK leadership vacuum feared over tension between Moon, Yoon
BOK Governor Lee Ju-yeol speaks at a press conference on Feb. 24 at the Bank of Korea headquarters in central Seoul. Newsis
By Anna J. Park
By Anna J. Park
With Bank of Korea (BOK) Governor Lee Ju-yeol slated to wrap up his term by the end of the month, concerns over a possible leadership vacuum at the central bank are growing following a delay of the meeting between President Moon Jae-in and President-elect Yoon Suk-yeol planned for Wednesday.
Had the meeting been held as planned, Moon and Yoon were expected to reach an agreement over the appointment of the next BOK chief. The meeting, however, was postponed, as the two parties' working-level consultations haven't yet been completed, according to President-elect Yoon's spokesperson Kim Eun-hye.
Normally, the appointment of a BOK chief takes up about a month, considering the necessary process including a confirmation hearing in the National Assembly. Given that the BOK's Monetary Policy Board's next meeting is slated for April 14, the appointment Governor Lee's successor would have to be made within this week in order to avoid a leadership vacuum.
Yet it seems almost impossible to meet the deadline, market watchers say, considering the ongoing tension between the presidential office and the President-elect over leadership appointments at state-led institutions.
If the BOK governorship is not filled by the end of the month, concerns over the central bank's monetary policies will be deepened amid increased inflation pressure and external uncertainties surrounding global oil price hikes as well as geopolitical tensions.
“We've asked for a joint consultation with the Moon administration regarding matters of personnel appointments at public institutions,” Yoon's spokesperson said.
Others say the possible leadership vacuum would not leave a huge impact on the country's monetary policies, given that the BOK Act states that the board meeting will be held upon the attendance of more than five board members, and matters will be decided with a majority vote.
If a new governor is not appointed by the Monetary Policy Board meeting next month, Joo Sang-yong, one of the board members of the BOK, is expected to take the leader's role temporarily.