Finance Minister Park Hong-keun of the Ministry of Planning and Budget and Bank of Korea Governor Shin Hyun-song held their first official meeting on Monday, discussing closer coordination between fiscal and monetary policy and cooperation on structural reforms. The meeting drew particular attention as the first official gathering between a Planning and Budget minister and a BOK governor, including during the ministry's earlier incarnation from 1999 to 2008.
Park visited the BOK headquarters on Monday morning to meet Shin. The meeting was arranged to congratulate Shin on his inauguration and to explore avenues for cooperation between the two institutions.
In his public opening remarks, Park said, "This is an important time for cooperation between the Ministry of Planning and Budget, which designs the nation's future strategy, and the Bank of Korea, which leads macroeconomic stability." He added, "The two institutions must operate fiscal and monetary policies in harmony while actively working to expand future growth potential and resolve structural issues." He also said, "Structural challenges such as the AI transformation, demographic change, the climate crisis, polarization and regional decline can be effectively overcome through organic coordination among various policy variables."
Shin said, "The complex tasks and structural problems our economy faces cannot be solved by the efforts of any single institution alone," adding, "We will continue to share our understanding of various economic issues with the government and maintain cooperation." He also said, "The Bank of Korea will continue its policy operations for price and financial stability, along with research and recommendations to expand growth potential."
In the closed-door meeting that followed, the two officials discussed the recent economic situation, policy responses and ways to overcome structural challenges. Both sides agreed that while growth is rebounding on strong exports amid persistent uncertainty related to the Middle East conflict, inflationary pressures from high oil prices and difficulties in vulnerable sectors are continuing. They concurred that policy capacity should be focused on stabilizing people's livelihoods, including price stability and support for vulnerable sectors.
Park introduced plans to establish a medium- to long-term national development strategy to address five structural challenges — the AI transformation, demographic change, the climate crisis, polarization and regional decline — and requested close cooperation from the BOK. Shin responded, "Structural issues are an important factor that affects medium- and long-term monetary policy conditions. We will find ways to contribute actively based on the BOK's research and analytical capabilities."
The two sides agreed to use the meeting as an opportunity to regularly share their views on the economic situation and key issues and to continue mutual cooperation.
Before the meeting began, Park presented Shin with a pine bonsai. "The names of the heads of both institutions contain the Chinese characters for pine (松) and root (根)," Park said. "Just as the roots and trunk of a pine cannot touch each other but need one another, let us maintain an unwavering partnership between the two institutions."
