. 6 / 8 above all, flexibility and expertise are needed in order to respond more preemptively and swiftly under the rapidly changing policy conditions. we should not take for granted that existing theories and practices are correct. while reinforcing expertise in individual fields, we should listen to a variety of outside opinions with an open mind. based on this, we should actively come up with realistic and suitable options for the tasks at hand. moreover, “ vision 2030, ” which is underway in commemoration of the 70th anniversary of the founding of the bank, should include strategies that can induce specific and practical changes. the next ten years will be significantly different from the past in terms of the speed and the nature of change. we need to predict future changes and give serious thought to what role the central bank should play going forward in response to this new environment. first and foremost, the organization and personnel management system and the way we work should be redesigned in accordance with the new future image of the central bank. to this end, and most importantly, all members of the bank will have to recognize that we must change and prepare for the future together. 7 / 8 my fellow members of the bank of korea, although global and domestic conditions are difficult, we still possess the potential with which we overcame even bigger crises. armed with confidence, we need to prepare for the potential risks that our economy could face going forward. i ask all of our staff to make their best efforts to fulfill their duties and responsibilities. as we greet this new year, i want to wish you all the very best of health and good fortune. thank you. january 2, 2020 governor juyeol lee 8 / 8

4 / 8 continuous efforts must be devoted to researching medium - to long - term tasks in response to evolving policy conditions. recently, there has been active research in major economies about rethinking the monetary policy framework. the bank of korea should also give thought to its policy operation system and in so doing refer to the discussions at major central banks. we should examine how inflation dynamics and policy conditions have changed, while reviewing whether there are areas for improvement in our inflation targeting framework and exploring efficient ways of operating it. in preparation against a reduction of the interest rate policy space, the bank will strengthen its research into the application of non - interest rate monetary policy instruments that are appropriate for domestic financial and economic conditions over the medium - and long - term horizon. financial stability requires our best efforts as well. the bank should thoroughly monitor the possibility of financial and foreign exchange market unrest and conduct market stabilization measures in a timely manner if necessary. our review of financial systemic risks should also be strengthened. we should keep in mind that the search for yield driven by low interest rates could cause a concentration of funds in the real estate market or risky assets, amplifying financial imbalances. the possibility of increased household and corporate credit risks and their effects on financial institution soundness should also be closely monitored. 5 / 8 with advancements in digital technology, payment and settlement systems are growing in importance. as the central body of the payment and settlement systems, we will need to continuously expand and improve the related infrastructure and upgrade the surveillance system in accordance with technological development. research on innovative technologies related to payments and settlements should not be overlooked as well. while organizing a task force dedicated to the research related to central bank digital currency and adding more experts in this field to the workforce, the bank of korea will have to participate actively in related discussions at international organizations. the project of establishing the next generation bok wire +, which will serve as the backbone of future payments and settlements, should be completed within the year as planned. dear members of the bank of korea, recently, financial and economic conditions have changed in unprecedentedly rapid and complex ways, making it hard to predict even in which direction they might develop. considering this, it is no wonder that the general public has great interest in and expectations toward the central bank, which plays a pivotal role in macroeconomic policy. we should thus keep in mind that the only way for us to earn public trust is to prepare ourselves thoroughly for policy environment changes and respond appropriately to them