chang yong rhee : an integrated policy framework - application to korea's monetary policy keynote speech by mr chang yong rhee, governor of the bank of korea, at the korea international economic association winter conference, seoul, 23 december 2024. * * * introduction today, i would like to discuss the integrated policy framework ( ipf ), which is emerging as a new holistic approach to the implementation of monetary policy, and share with you how this framework has been applied to the bank of korea's monetary policy through two practical examples. over the past two and a half years, the bok has faced criticism for what some view as hesitation and delay concerning policy decisions. one of the criticisms has been that, despite adopting an inflation targeting framework, the bok has not focused solely on price stability, but that it has also considered other factors, such as exchange rates, household debt, and real estate prices. this broader focus has led to concerns that the bok may have missed the optimal timing in terms of adjusting interest rates during both the tightening and easing phases. however, since the global financial crisis, there has been a growing consensus among international organizations such as the imf and the bis, as well as across academia, that emerging economies without reserve currencies could benefit from complementing traditional monetary policy with other policy tools, such as foreign exchange intervention and capital flow management, all as part of an ipf. the imf has acknowledged the effectiveness of such tools, like foreign exchange intervention and capital flow management policies, that were previously under - appreciated. indeed, i contributed to these discussions during my time as the imf director for the asia - pacific region. thus, today, i will illustrate how the bok has implemented this integrated approach through two cases : the financial and foreign exchange market instability we saw in late 2022, and the decision to hold the policy rate steady in august 2024. the integrated policy framework non - reserve - issuing economies face constraints in achieving both price stability and financial stability through traditional monetary policy alone. this is primarily due to the high volatility in capital flows and exchange rates that arises from their heightened sensitivity to changes in global financial conditions. more fundamentally, these economies are limited in their ability to act as lenders of last resort in the foreign exchange market. as a result, international organizations such as the imf and the bis have begun analyzing how non - reserve - issuing economies can more effectively achieve price stability and financial stability by employing a combination

juyeol lee : bank of korea ’ s 65th anniversary speech by mr juyeol lee, governor of the bank of korea, at the commemorating ceremony of the bank of korea ’ s 65th anniversary, bank of korea, seoul, 12 june 2015. * * * dear fellow members of the bank of korea family, today marks the 65th anniversary of the bank of korea ’ s foundation as korea ’ s central bank. on this happy occasion i would like to express my sincere gratitude to all those who have served before us in the bank of korea, devoting themselves throughout the years to the development of the bank and the national economy, and to those who have given us support and encouragement as well. let me also express my compliments to each and every member of our staff, for faithfully carrying out the duties entrusted to you under difficult conditions. since the beginning of this year our economy has shown signs of a modest recovery even though exports have been sluggish, as domestic demand has improved. the bank of korea has been cutting its base rate and expanded its bank intermediated lending support facility since the second half of last year. i think that this large - scale monetary policy easing has underpinned the recovery of economic activities. in the latter half of this year the korean economy is expected to sustain its trend of improvement, thanks to the economic recoveries in major advanced economies including the us and to the effects of our expansionary macroeconomic policies. there are still downside risks to its growth path, however, such as the slowdowns in emerging market economies, the weakening of our export momentum, and heightened volatility in the international financial markets. there are also concerns about domestic demand turning sluggish as the sentiments of economic agents contract and consumption slows due to the effects of the mers ( middle east respiratory syndrome ) outbreak. dear fellow bok members, there are not a few challenges remaining that have to be overcome in order for the korean economy to maintain sound economic growth in the future. first, looking at the domestic situation, there is a possibility of our growth engines continually weakening due to structural factors not easily resolved within a short space of time. sectoral imbalances, labor market rigidity and excessive regulation are holding back virtuous cycles between growth and employment and between production and income distribution. in particular, the unemployment problem faced by today ’ s youth, the future leaders of our society, is deeply troubling because it can even weaken