Raghuram Rajan, former governor of the Reserve Bank of India (RBI), has expressed support for President Lee Jae-myung's nomination of Shin Hyun-song as Bank of Korea (BOK) governor candidate, calling it "a very wise choice." Regarding the controversy over Shin's family members' nationality, Rajan dismissed it as irrelevant to the candidate's ability to perform his duties.
Rajan, currently a professor at the University of Chicago Booth School of Business, made these remarks in a written interview with The Seoul Economic Daily on Saturday. Having served as RBI governor from 2013, Rajan stabilized the rupee's sharp depreciation and inflationary pressures through monetary tightening, and has been mentioned as a candidate for governor of the Bank of England (BOE) and managing director of the International Monetary Fund (IMF), earning broad trust in international financial circles.
Rajan described Shin as "one of the world's top economists who has proven his practical capabilities through years of policy advisory work," adding that "he is perfectly prepared to excellently fulfill the role of BOK governor."
The remarks appear aimed at controversies that have emerged ahead of the confirmation hearing. Shin's spouse is a Korean-American born in the United States who lost Korean citizenship in 2000 but did not report the loss until 11 years and six months later. Some lawmakers are demanding thorough vetting at the hearing, noting that the report was not filed even while Shin served as senior secretary for international economic affairs at the presidential office in 2010.
Rajan directly rebutted such concerns. "In a globally integrated economic environment, would you want a policymaker who accurately understands the international system and can navigate crises, or someone who doesn't know that complex structure?" he asked. He added, "If a policymaker's capabilities are confirmed, the key is whether they have the right intentions," noting that "Shin has already built an impeccable reputation."
Their relationship spans more than 20 years. Rajan and Shin were founding members of the Squam Lake Group, a gathering of 15 leading economists of the era—including Nobel laureates Robert Shiller and Frederic Mishkin—formed to discuss financial system reform.
Rajan said global expertise and domestic public responsibility are not necessarily in conflict, adding that "the key is always doing what is best for the country." Analysts note that the network Shin built during his more than 10 years at the Bank for International Settlements (BIS)—serving as economic adviser, head of research, and head of the monetary and economic department—with figures including Federal Reserve Chair Jerome Powell and European Central Bank (ECB) President Christine Lagarde represents an important asset for the Korean economy at a time of heightened exchange rate volatility and external uncertainty.
At the end of the interview, Rajan wished Shin "the best of luck."
