choongsoo kim : challenges and policy responses to the euro crisis opening remarks by mr choongsoo kim, governor of the bank of korea, at the seacen - bis executive seminar, busan, 24 september 2012. * * * distinguished deputy governors, delegates of seacen member central banks! ladies and gentlemen! i would like to welcome you once again for coming to busan to attend the seacen - bis executive seminar. in particular, my special thanks go to mr. francesco papadia ( director general of market operations and adviser to the executive board, ecb ), professor takahashi ito of tokyo university and chief economist changyong rhee of the adb for taking time out of your busy schedules to attend the seacen - bis executive seminar as speakers. let me also express my appreciation to lead discussants and session chairs. taking this opportunity, i would also like to express my gratitude to dr. eli remolona and his staffs from the bis representative office for asia and the pacific and the seacen center for your efforts and hard work to organize this seminar. we are holding the seminar today on challenges and policy responses to the euro crisis under the theme of dealing with financial contagion with leading experts in each field. i hope particularly that this seminar will be a good chance to further elucidate the causes and the prognosis for the euro crisis and its effects on emes, and share our experiences and wisdom on the future policy challenges. the most notable characteristic of the recent global crisis is that the shocks from a certain sector have spread rapidly and been amplified to the global real sector through the high level of global financial inter - connectedness that has been built up over the past few years. that said, it seems to me that the cross - border adverse spillovers and excessive global liquidity and the resulting capital flow management difficulties, deemed to be at the root of the crisis, have, to a large extent, failed to be resolved when we look at the international coordination efforts so far to deal with the crisis and what they have involved. therefore i believe there is a good case for us to conduct a critical review at this point as to whether the active policy implementation efforts made by major advanced nations including the us in coping with the crisis have been effective to some extent but have so far fallen short in terms of the global spillover effects of the crisis, and, furthermore, whether the various policy tools used during the crisis have worked as they

. for our part, we also similarly need to further push back and advance the horizon of a new explanatory paradigm that will stand for the next twenty or thirty years, through the historic impetus of the outbreak and resolution of this global financial crisis. noting that “ the ever - changing nature of the challenges calls for vigilance and an on - going willingness to re - examine critically even well - honed convictions ” in his speech, former bis general manager sir andrew crockett, who passed away in early september, emphasized the importance of overcoming the ever - increasing challenges through “ vigilance ” and “ willingness ”. 2 sir andrew crockett ’ s speech on “ central banking under test? ” : conference on “ monetary stability, financial stability and business cycle ”, basel, switzerland ( 2003. 3. 28. ) bis central bankers ’ speeches we need to exercise our wisdom to overcome such challenges through creative responses in the face of the historic challenges. to this end, i think all economic players should stop looking back and start looking forward. brief though this seminar is, i hope that it will be useful for us broadening our perceptions of the new intellectual paradigm. once again i would like to extend my gratitude to all participants and hope that this seminar will serve as a forum for lively and productive discussions with the active participation of all of you who are attending this seminar on behalf of seacen members. thank you. bis central bankers ’ speeches