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

juyeol lee : 67th anniversary of the bank of korea speech by mr juyeol lee, governor of the bank of korea, at the commemorating ceremony of the bank of korea ’ s 67th anniversary, seoul, 12 june 2017. * * * dear fellow members of the bank of korea family, today marks the 67th anniversary of the bank of korea ’ s foundation. i would like to take this opportunity to express my sincere gratitude to all those who served before us in the bank of korea over the years, devoting themselves to the development of our bank and the national economy, and to those who have supported and encouraged us as well. let me also express my compliments to each and every member of our current staff, for so faithfully carrying out the duties entrusted to you. although consumption still appears to be recovering only modestly, it is judged that the pace of growth in our economy is accelerating, as exports are increasing rapidly and investment is also showing favorable movements. as these trends continue, it is expected that the economic growth rate for this year will exceed the forecast in april. notably, if measures to expand fiscal expenditures to create jobs and for other purposes are implemented by the new government, then the pace of growth will accelerate even further. however, looking at the economic environments at home and abroad, there are still numerous potential risks preventing us from complacency about this positive growth outlook. if our trade relations with major countries become strained, owing to stronger trade protectionism for example, the negative impacts on our economy with its heavy dependence on exports can be high. additional rate hikes and the reduction of its balance sheet by the us federal reserve, as well as political uncertainties in major countries and geopolitical risks related to north korea, can also at times lead to increased financial market volatility and even work to limit our growth. on the domestic front, there are a variety of difficult structural problems causing the recovery in our economic vitality to slow. factors such as our low birth rate and population aging, intersectoral imbalances, and the dual structure in the labor market have been weakening our growth potential and the virtuous cycle in our economy. further, owing to delays in industrial advancement and in finding new drivers of growth, improvements in productivity and the creation of high - quality jobs are not being properly achieved. as household debt has continued to grow faster than household income for a long time, concerns are rising that household debt can constrain