reason, i would emphasize the importance of establishing an environment in which international standards can be applied. in parallel with our pursuit of price stability and financial stability, we should press persistently forward with efficient conduct of our currency - issuing business and advancement of the payment and settlement system. heightening payment and settlement system stability, in line with the new international standards being drawn up under the auspices of the bis, is a vital task as well. we must also continue our endeavors to mitigate the volatility of foreign capital flows. the bank of korea, in coordination with the government, intends to implement seamlessly a macro - prudential stability levy on non - core foreign currency liabilities as scheduled in the latter half of this year. in addition, we will need to strengthen our monitoring of the international and domestic financial and foreign exchange markets, and if necessary devise supplementary measures, while remaining on guard against the possibility of heightened capital flow volatility caused for instance by overseas risk factors. the efficient operation and administration of the foreign exchange holdings that constitute reserve assets for external payments in times of emergency are of the utmost importance. we must maintain our efforts to maximize our operational capacities, by enhancing the effectiveness of the operating framework and heightening the expertise of staff, befitting a time when the foreign exchange reserves amount to more than 300 billion dollars. ongoing pursuit of internal reform at the bank of korea dear friends and colleagues, in keeping with the rapidly shifting external environment, the pace of our internal reforms will have to be spurred on still further. it is vital above all to augment the bank of korea ’ s research capabilities, in order for it to not only fulfill its duties as a policy authority but also develop into a first class economic research institute, equipped with the expertise to diagnose a wide variety of economic issues and present prescriptions for addressing them. while striving to improve the quality of the economic statistics, we must maximize the synergy effects of our departments charged with undertaking research through the activities of the newly - introduced research committee, the promotion of matrix - type combined research, and joint research with international organizations, consequently consolidating the institutional memory of the bank of korea. through these steps we will have to move to bis central bankers ’ speeches heighten the quality of the bank of korea ’ s research and analyses enough to be duly recognized within the international community. in aiming for a “ global bok ”, the importance of cultivating human talent can hardly be overs

policies, in some cases defying the taboo of buying government debt in the primary market — was possible mainly because they were implemented in response to common global shocks such as the gfc and covid - 19. abundant global liquidity and the fact that advanced economies themselves were breaking taboos on a much larger scale might have helped emes avoid being penalized by international capital markets, unlike in the past. in the future, when emes alone face the risk of falling into secular stagnation, i doubt whether the same result will hold. a similar magnitude of expansionary fiscal and monetary policies in emes as seen in the last few years in coping with covid - 19 would, in the absence of massive global liquidity, have different implications for exchange rates, capital flows and inflation expectations. what effective eme - specific unconventional polices could be designed for their own periods of low inflation and low growth is still an open question, and this will be my homework to get prepared for the future. this could also serve as an opportunity to discuss the topics of how qes can distort term premiums and other aspects of financial markets, and whether emes can look to other effective umps such as fx interventions and capital flow management measures to achieve their objectives. distinguished guests, central banks are like an organism that evolves over time. the more - 7 - than 300 years of central bank history have been an incessant process of evolution. we must not forget that the interpretation of central bank mandates and ways to achieve them have been constantly evolving. hopefully, this conference will be useful in sharing our thoughts on the challenges that lie ahead so that central banks can live up to social expectations during this great transformation to a post - pandemic world. i look forward to hearing a rich discussion from diverse perspectives today. once again, i wish all of you a fruitful and successful conference. thank you. 2 june 2022 governor rhee, chang yong - 8 - references carstens, a., 2022. “ the return of inflation, ” speech at the international center for monetary and banking studies, geneva, 5 april 2022. cour - thimann, p. & winkler, b., 2013. “ the ecb ’ s non - standard monetary policy measures : the role of institutional factors and financial structure, ” working paper series, no. 1528, european central bank. english, b., forbes, k., & ubide,