Nearly half of Bank of Korea (BOK) governor nominee Shin Hyun-song's total assets are held overseas, making the issue a central point of scrutiny ahead of his confirmation hearing. While his 44 years of residence abroad makes a large foreign currency portfolio understandable, concerns over potential conflicts of interest with exchange rate policy have emerged should he assume the central bank's top post. Some observers predict he may sell off a portion of his foreign currency assets, as maintaining such an asset structure during his tenure could invite sustained controversy.
According to the BOK and the National Assembly on Monday, approximately 55.5 percent of Shin's declared total assets of 8.2 billion won — or 4.57 billion won — are held overseas. Excluding real estate, his financial assets amount to roughly 4.6 billion won, of which 98 percent are foreign assets, including deposits in U.S. dollars, British pounds, and euros, as well as British government bonds.
Critics point out that this raises conflict-of-interest concerns for the head of the central bank, who is responsible for foreign exchange market stability. A weaker won — meaning a higher exchange rate — would increase the value of foreign currency assets when converted to the Korean currency.
"It would be more accurate to view the nominee's foreign currency holdings as a natural result of his long-term residence overseas rather than a deliberate investment decision," one economist said. "However, questions could be raised about whether this is appropriate for the head of the foreign exchange authority, who is responsible for exchange rate policy."
Under the Public Service Ethics Act, foreign currency deposits are not subject to blind trusts or forced divestiture. Still, if the confirmation hearing process raises concerns about conflicts with his duties, the possibility of Shin selling his foreign currency assets has been discussed.
Domestic real estate issues are expected to face more intensive scrutiny, as they directly touch on public sentiment. Shin's side has said it is pursuing the sale of an officetel in Jongno-gu (approximately 1.8 billion won) and a U.S. apartment under his spouse's name (approximately 280 million won). However, controversy over fairness could arise over the decision to retain the Gangnam-gu apartment (1.509 billion won) — widely perceived as an asset with relatively higher expectations for future price appreciation — while disposing of the officetel first. The BOK explained that "the nominee's mother currently resides in the Gangnam apartment, so the decision on its disposal may be reviewed after he takes office."
Some in academia argue that this confirmation hearing should serve as an opportunity to redefine the standards for vetting central bank governors. Lee Yoon-soo, a professor at Seoul National University's Graduate School of International Studies, said, "Long-term exchange rates are determined by economic fundamentals such as cross-country productivity and terms of trade, so the possibility that a governor's personal assets could distort monetary policy is limited."
Kim Jin-il, an economics professor at Korea University, said, "Just as Mark Carney served as governor of the Bank of Canada before being recruited as governor of the Bank of England, and later became Canada's prime minister, we need a discussion on what criteria should be used to evaluate diversity and openness in the composition of the BOK governor and the Monetary Policy Board."