reinvest the principal payments from maturing securities purchased under the asset purchase programme for an extended period of time after the end of our net asset purchases, and in any case for as long as necessary to maintain favourable liquidity conditions and an ample degree of monetary accommodation. looking ahead, monetary policy will be firmly guided by the outlook for price stability and our stance will evolve in a data - dependent and time - consistent manner. 2 / 2 bis central bankers'speeches

banks to overcome the crisis were so unprecedented that it is difficult to predict the channels, the extents and the intensities of their impacts. there is a view that the expanded liquidity supplied will create new bubbles, while the u. s. federal reserve ’ s qe tapering beginning from last year has also caused financial instability in some emes. our korean economy is also confronting many difficulties. our growth potential is weakening due to the slowing rate of increase in our economically active population, to sluggish corporate investment stemming largely from the uncertainties about the business outlook, and to regulatory hurdles. income and wealth gaps across industries, corporations and individuals have widened, as the fruits of growth have not been evenly divided. excessive household debt, which constrains private consumption, is not only weighing on growth, but also narrowing the scope for our macroeconomic policy operations. my dear friends and colleagues, i would like now to share with you some of the things that i will keep in mind during my governorship. bis central bankers ’ speeches first, i believe that the role and responsibilities of the bank of korea must be redefined, in line with the changes in the economic structure and the external environment. we need to consider deeply how to meet the people ’ s demand that the current monetary policy framework pursue not only price stability but also financial stability and economic growth, in harmony. there is a need for us to review and discuss in earnest how our policy objectives and instruments should be changed to accommodate this new demand for an evolution of the bank of korea ’ s role. if social consensus on this is reached, even if it takes time, the bank of korea will develop into a more advanced central bank. next, we need to devote our utmost efforts to achieving a rebirth of the bank of korea as a central bank trusted by the korean people. the essence of monetary policy lies in effectively managing the expectations of economic agents, and this is only achievable with the people ’ s belief in their central bank. i will devote myself to enhancing our bank ’ s policy effectiveness, through efficient communication and consistent and predictable policy operations. third, i will devote close attention to preparing against potential risks and ensuring that our economy maintains a stable recovery while sustaining price stability. in particular, i will thoroughly monitor external risk factors, such as changes in the monetary policy stances of major economies and the possibilities of resulting unrest in the global financial markets and emerging market economies, and endeavor to come up with the necessary