to us. we have to constantly ask ourselves what the roles being demanded of the central bank are, right now in particular, what policy alternatives related to pending economic issues we can propose, and how we should communicate with economic agents about our monetary policy directions. meanwhile, if we carry out our duties passively, for the reason that predicting the directions and the timings of future changes is difficult, then it will be difficult to propose policy alternatives that will help our economy to develop. we will have to exert courage individually, and work with enterprising spirits like ’ first penguins ’, taking single steps at a time 4 / 5 forward and challenging the environment. but even if an organization ’ s members all devote their best efforts in their own individual spheres, unless they can overcome the ‘ silo effects ’ of focusing solely on their own or their own departments ’ performances it will be difficult for the organization as a whole to develop. we therefore have to work to increase staff communication − between superiors and subordinates, between co - workers, and between departments − and through a broadening of understandings fix into place a healthy organizational culture characterized by mutual respect and care for one other. i cannot stress enough that we will have to design an elaborate assessment and compensation framework, and operate it to ensure that our organizational and personnel system can well support the development of such a culture. my fellow bank of korea family members! at this time last january, we started our new year with a special determination compared to any other time, to overcome the many difficulties that we faced. our economy has fortunately been showing a steady trend of growth, so that we have been able escape certain worries that we initially had, but we cannot be complacent and let down our guards at any time. i ask that during this year as well all of us, as central bankers, go forward with self - esteem and a sense of mission and do our very best in fulfilling the duties entrusted to us. as we welcome this new year of the golden dog, i want to wish all of you here at the bank of korea, and your families, a year filled with health and happiness. thank you. january 2, 2018 governor juyeol lee 5 / 5

support economic recovery, while at the same time responding to mounting uncertainties in the financial markets stemming from external shocks. so with this background in mind, allow me to share my views on the policy tasks small open economies have to deal with. first, in our conduct of monetary policy we should pay special attention to financial stability risks, while supporting the recovery of economic growth. we should maintain our accommodative monetary policy stances to ensure that the trend of low growth does not become entrenched. yet at the same time, we must ensure that this does not undermine financial stability. especially in the case of small open economies, we need to bear in mind that, if the degree of monetary easing is excessive, the risk that external shocks would trigger sudden capital outflows and currency depreciation is relatively higher. second, we should strengthen our efforts to reduce the negative impacts of overseas factors on domestic financial stability and economic growth. since the global financial crisis, many bis central bankers ’ speeches countries have taken various steps to enhance their capacities to cope with external risks, for example by strengthening macroprudential policies, improving exchange rate flexibility and increasing their foreign reserves. at an international level, they have implemented the basel iii framework and strengthened regulations on g - sifis, in an effort to heighten the resilience of financial institutions to external shocks and improve the shock absorption capacities of their financial systems. through this conference, i hope that we can share what we have achieved with these policies and what we have learned from them. i also hope that we can come up with new supplementary measures. third, we need to continue to pursue international cooperation to expand financial safety nets. they have been steadily improved at both the global and regional levels, with the establishment of the imf ’ s new arrangements to borrow, the conclusion of us dollar currency swap arrangements between major countries, and the increase in the chiang mai initiative multilateralisation ( cmim ) fund. going forward, we should continue our efforts on international cooperation for stronger global financial safety nets. to this end, we need to promote cooperation between the imf and regional financial arrangements such as the european stability mechanism and cmim, and expand international currency swap arrangements. finally, i would like to emphasize the necessity of structural reform. during the global financial crisis, and even after the crisis, we have witnessed numerous instances in which countries with strong economic fundamentals rapidly overcame external shocks. a great deal of research shows that structural reform involves