ratings. therefore, it will be necessary to explore various approaches, such as aggregating bank loans to smes and securitizing them, and issuing bonds that meet international standards of green finance, to indirectly provide these smes with the benefits of green finance. lastly, the bank of korea is also dedicated to enhancing communication with the korean people regarding the importance of green finance. we are committed to fostering a stronger dialogue and understanding between the central bank and the public on matters related to sustainable finance. through this joint conference, i hope we can share insights and ideas on how to promote green finance, develop sustainable industries, and contribute to the achievement of carbon neutrality. i am confident that the discussions and outcomes from this conference will serve as valuable input for policy formulation and implementation. once again, i extend my warmest welcome to all participants, and i hope you have a productive and meaningful conference. thank you very much. 1 for more details, please refer to " main contents of the 1st master plan for the climate change response technology development " ( december 2022, ministry of science and ict ) 2 for more details, please refer to the result of a survey on public awareness of impacts of the climate change on national health. ( october 2022, the survey was jointly conducted by the korea disease control and prevention agency and the korean society for preventive medicine ) 3 for more details, please refer to box 7 of the financial stability report ( december 2022, bank of korea ) titled " comparison of greenhouse gas emissions across countries and assessment of domestic firms'vulnerabilities to climate risks. " 4 for more details, please refer to box 9 of the financial stability report ( bank of korea, june 2023 ), titled " current status of the embodied carbon emissions from the export industry and vulnerability factors of the corporates. " 3 / 4 bis - central bankers'speeches 5 for more details, please refer to box 7 of the financial stability report ( june 2021, bank of korea ), titled " bank stress test to measure transition risk from climate change " and box 7 of the financial stability report ( june 2022, bank of korea ), titled " impact of rising carbon prices on sectoral value - added " 4 / 4 bis - central bankers'speeches

##gilance is also called for as the korean economy confronts problems that are by no means trifling. firstly the public perception of the actual state of economic activity is by no means as flattering as conventional indicators might suggest owing to the deterioration of the terms of trade and the severe downturn in housing market activity. secondly although overall employment conditions are picking up, youth unemployment is still running at a high level and the improvement in employment conditions for weaker members of society including the self - employed still remains inadequate. it is also very well possible that inflation expectations among the general public will build further as the rate of price increases accelerates. iii. challenges for bok ’ s monetary policy now i would like to turn to the challenges ahead of monetary policy in confronting the present domestic and international economic environment. conducting interest rate policy efficiently the bank of korea has already begun to undertake efforts to normalize the policy stance by phasing out the measures adopted immediately after the global financial crisis. after keeping its policy base rate on hold for 17 straight months, the bank of korea raised it by 25 basis points from 2. 0 % to 2. 25 % on july 9 this year, taking into consideration the strong possibility of inflation pressure increasing in the latter half of the year with the continuation of the economic upswing. as all of you are aware, the bank of korea decided to maintain the base rate at 2. 25 % in august. ahead of this, on june 24 this year, it cut down the aggregate credit ceiling for the third quarter this year by 1. 5 trillion won. this had been increased in two steps by 3. 5 trillion won to 10 trillion won following lehman brothers ’ bankruptcy. in this way korea has joined the ranks of those countries around the world that have raised interest rates along with canada, australia, norway and sweden and so on. in fact the imf and the oecd had advised a preemptive hike of interest rate for korea in order to counter upward price pressures. although the policy rate has been adjusted upward, the scale of the increase in interest rates was not very large and, as it had to some extent been factored in, it is likely to have only a limited impact on the financial and housing markets and on the household and corporate sectors. what is more, despite the hike in the policy rate, the current monetary policy stance is still deemed highly accommodative, given the situation of the real economy in terms such as the potential growth and inflation