Key Points: South Korea on Thursday announced three new members and extended the term of one incumbent member for the Bank of Korea's seven-member policy board, in a major reshuffle that may shed light on President Moon Jae-in's focus on property curbs and market stability.The new members will replace Cho Dong-chul, Shin In-seok, policy doves who have urged more stimulus, and Lee Il-houng, who has been the committee's most hawkish member.The newcomers could make neutral-hawkish members the majority, as three on the board including Governor Lee Ju-yeol, his No.2 Yoon Myun-shik and Lim Ji-won are known for their tendency to put an emphasis on financial market stability.
Signage for Bank of Korea is displayed atop the central bank's headquarters building in Seoul, South Korea, on Thursday, Aug. 16, 2018.
South Korea on Thursday announced three new members and extended the term of one incumbent member for the Bank of Korea's seven-member policy board, in a major reshuffle that may shed light on President Moon Jae-in's focus on property curbs and market stability.
Cho Yoon-je, former ambassador to the United States, and former deputy governor of the bank Suh Young-kyung were nominated to join the policy-setting committee.
Joo Sang-yong, a Konkuk University professor, was nominated by the Financial Services Commission, while incumbent Koh Seung-beom, seen largely as neutral, was nominated to serve for an extended period.
The new members will replace Cho Dong-chul, Shin In-seok, policy doves who have urged more stimulus, and Lee Il-houng, who has been the committee's most hawkish member. Their terms expire on April 20.
The newcomers could make neutral-hawkish members the majority, as three on the board including Governor Lee Ju-yeol, his No.2 Yoon Myun-shik and Lim Ji-won are known for their tendency to put an emphasis on financial market stability.
"The new members are likely to add support for Moon's policies," said Yoon Yeo-sam, a fixed-income strategist at Meritz Securities.
Yoon said Joo is especially seen as a hawk, as he has called in the past for more property market regulations, while supporting Moon's policy on boosting household income.
Taming the property market is critical for Moon who pledged an "endless" stream of measures until prices cool in some neighbourhoods. Apartment prices in Seoul have surged by 50% since he took office
If appointed by Moon, as they are likely to be, the incoming members will have terms of three and four years, staggered to ensure that the bank will not have a majority of its members retiring at the same time.
While the BOK's independence to set monetary policy is guaranteed by law, the government has a long track record of pressuring the central bank to cooperate on policy direction.
The BOK held its policy interest rate at a record low of 0.75% on April 9 but signaled strong appetite for further cuts and unconventional policy to combat the economic hit from the coronavirus pandemic.
原文地址：https://www.cnbc.com/2020/04/16/south-korea-reshuffles-central-bank-board-may-shed-light-on-governments-focus-on-stability-risks.html