Speaker 1: Well, and we know that the Bank of Career has
Speaker 1: been trying to allay concerns, wanting to bring calm to
Speaker 1: the market, and so far we're seeing some revisal and
Speaker 1: the losses of the one Let's get perspective from the
Speaker 1: Bokay governor. We have Governor Ri chang Yong joining us
Speaker 1: from so governor, real good to have you with us.
Speaker 1: I'm just wondering how you're assessing the fallout in the
Speaker 1: market so far.
Speaker 2: The Marshall law te CREB last night has been lifted
Speaker 2: within a few hours, and the financial market is stabilizing quickly.
Speaker 3: It's a relief that the impact of the market was
Speaker 3: shortly lived. While it is still true that it's.
Speaker 2: Hard to predict the political dynamics, but I believe that
Speaker 2: the economic dynamics in Korea can be separated from the
Speaker 2: political dynamics given our strong market fundaventors and also.
Speaker 3: The mature democracy.
Speaker 4: So do you think you've done enough so far? No?
Speaker 2: What is you now is actually I'm very happy that
Speaker 2: the impact has been short to live. Deepinically, we have
Speaker 2: to see how these political events will evolve. In the meantime,
Speaker 2: we focus on providing and pull liquidity to stabilize the market,
Speaker 2: and when we look at the market, we do not
Speaker 2: see any matafunctioning.
Speaker 3: So but on the other hand, we by.
Speaker 2: Expecting that, you know, in preparation for the future possible
Speaker 2: UH financial unrest, we actually crengthened our liquidity UH injection
Speaker 2: facilities such as.
Speaker 5: UH the increasing our depot purchase of women and also
Speaker 5: extending our UH illigible securities for open up your operation.
Speaker 3: And so far, so far, so far it works well.
Speaker 4: Yeah, so far, so good.
Speaker 1: But in my conversation with a former trade minister of career,
Speaker 1: he did talk about how he's expecting prolonged political uncertainties.
Speaker 4: How prepared is it being okay for that?
Speaker 3: Actually I watched your program.
Speaker 2: Actually I think he was more concerned the other structural factors,
Speaker 2: not only this problem the political issue.
Speaker 3: But I think.
Speaker 2: It's that yet decided. It's very hard to predict pitch options.
Speaker 2: The political process really evolved. But I think you know
Speaker 2: that the created government officers are well trained. We are
Speaker 2: well experienced in handling the several difficulties. So I think
Speaker 2: while in government in transition or in this transition period
Speaker 2: which we believe a couple of months, I think we
Speaker 2: have many tools and the talented government officers to handle
Speaker 2: this macro constitution.
Speaker 4: The tools include another rate cut.
Speaker 1: You did a back to back rate cud in anticipation
Speaker 1: of Trump's tariffs, which you say, well, weigh on the economy.
Speaker 4: Might we see you cut rates even more?
Speaker 3: Oh, you mean that because of this prolifical comment. I
Speaker 3: don't think so, because.
Speaker 2: As I mentioned this, this political event was very short
Speaker 2: to live and I do not see any reason why
Speaker 2: it has to change our economic outlook. At this moment,
Speaker 2: we are focusing our gross rate years will be around
Speaker 2: two point two percent and the next year it will
Speaker 2: be around nine one point nine percent. But I think
Speaker 2: we are still at this moment stick to our focus.
Speaker 3: But I think I believe that our gross.
Speaker 2: Focus will be more impacted by the structure of factors
Speaker 2: such as a change in grow a valley chain and
Speaker 2: also you know democraps, the facility rate and democraphy demography
Speaker 2: in our continue. So these structure factors will be much
Speaker 2: more important factors in the determining.
Speaker 3: What our maintein potest will be and how we change our.
Speaker 2: Focus, rather than this political event whichure short lived.
Speaker 1: Yesterday, Governor, we know that you have regular meetings with
Speaker 1: the Finance Ministry also with the financial Regulator.
Speaker 4: That meeting now.
Speaker 1: Becomes even more important given how the government is now
Speaker 1: in this array. I'm just wondering, what's the significance of
Speaker 1: those meetings now and what kind.
Speaker 4: Of issues do you think will come forward.
Speaker 2: I can be very proud that we call a four
Speaker 2: meeting financial experts meeting.
Speaker 3: I think that this is actually I have been.
Speaker 2: Working for many other institutions in many other countries, but
Speaker 2: I think the communication channel that we developed in the
Speaker 2: last two years, so this among our full regulators and
Speaker 2: Finance NEWSS and me we discuss every issue and we
Speaker 2: are we actually own our independence, but we discuss finance
Speaker 2: stability tis ever we should need to change our use.
Speaker 2: And actually yesterday after this political event happens around one
Speaker 2: thirty am eleven forty am, we gather together discuss what
Speaker 2: we can do together, and then we also have another
Speaker 2: meeting at.
Speaker 3: Seven in the morning. Actould say I was top day
Speaker 3: for me. I'm going to be.
Speaker 2: Sleepy, but I think this corporation that can us is
Speaker 2: means and work very well covering almost every account of issues.
Speaker 4: Governor.
Speaker 1: I'm just wondering with regards to the meetings that you
Speaker 1: have with the policymakers in the Finance ministry for instance,
Speaker 1: I mean, should the framework betweak perhaps to perhaps you know,
Speaker 1: improve the leadership and uh you know the effectiveness of
Speaker 1: those meetings given the situation of the government right now,
Speaker 1: I think.
Speaker 3: I like this.
Speaker 2: So this informal platform because if it comes formal, you
Speaker 2: need to prepare and there are a lot of bureaucracy
Speaker 2: can be involved.
Speaker 3: But even now intimacy.
Speaker 2: And we can discuss many issues and by ordering our
Speaker 2: independence and the separate role of the institution has to do,
Speaker 2: we can do the perfect divisional label. For example, today
Speaker 2: Career called on the spatial maintain postimmiliating. We focused on
Speaker 2: the apeity injection today and the financial variety Services focused
Speaker 2: on the measures how to civilize submarket. And then the
Speaker 2: MUSU of Finance is coordinating many policies and they actually
Speaker 2: uh work hard to to develop and you know, uh
Speaker 2: monitor the EFTs market for example. This kind of division
Speaker 2: of label was has been possible because we have discussed
Speaker 2: this policy consistently, coherent, coherently accurse our institions.
Speaker 1: You talked about how there is no need to really
Speaker 1: look at your rate card trajectory. How confident are you
Speaker 1: about the economy? Bearing in mind that we're seeing protests
Speaker 1: in the streets. I mean tomorrow we're going to see
Speaker 1: the current railway workers going to the streets as well
Speaker 1: in protests. Might that not impact in that's a sentiment.
Speaker 1: Might not that impact consumption? Might not that impact confidence
Speaker 1: in the country and the economy.
Speaker 2: I probably the factors you mentioned could have been a
Speaker 2: very important factor if the President didn't accept the National
Speaker 2: Assembly recommendation to lift the lift the martial law. But
Speaker 2: given that the marshal law has been lifted, and now
Speaker 2: I think if you look at the other side of
Speaker 2: the coin, I think political certainty is actually increased, not decreased,
Speaker 2: because in the last COPO of a year, I think
Speaker 2: the tension between the ruling.
Speaker 3: Party and o Ovisian Party make everything you dead lack.
Speaker 3: But now I think this kind of some kind of
Speaker 3: political can also help our projections.
Speaker 2: Yes, as you mentioned, there may be some short term difficulties,
Speaker 2: but I think if you can look at the other
Speaker 2: side of coming there is also part of side. And
Speaker 2: I think if you look at what happened yesterday, actually
Speaker 2: I'm very I.
Speaker 3: Think that you can see that the creacisions and.
Speaker 2: Our politicians and our political systems are much more mature
Speaker 2: and sane.
Speaker 3: And I believe you mentioned the.
Speaker 2: Label union's protests, but that kind of protest has been
Speaker 2: around for the last ten years, and if President didn't
Speaker 2: lift the march at all, that protest could have been
Speaker 2: agglivated quite signicanty. But I don't think that. Yes, I
Speaker 2: think regarding the st piachment effort, now there will be
Speaker 2: some noise, but I.
Speaker 6: Think that noise is not as as as we will
Speaker 6: be a one not be very.
Speaker 3: Large compared to the but we have been experiencing so far.
Speaker 1: Governory, you're expressing optimism despite the political turmoil, then what
Speaker 1: scenarios that would worry you?
Speaker 3: Look, look, I do not mean that the embassy will
Speaker 3: be smooth.
Speaker 2: I think the last couple of months there will be
Speaker 2: a lot of tensions among the political parties, and that
Speaker 2: this is a political debate only as smooth as probably
Speaker 2: wished for.
Speaker 3: But what I mean is that, but.
Speaker 2: Those kinds of things are within the realm of what
Speaker 2: our government officers and experienced government officers and progressions can.
Speaker 3: Handle using various tools that we have. And on the
Speaker 3: other hand, what I'm worrying about is that it's more
Speaker 3: likely there are a lot of grover uncertainties.
Speaker 2: As you mentioned that the major countries you know, colge issues,
Speaker 2: tarrif and also changing of Robert supply chain, and as
Speaker 2: you mentioned that the geopolitics in Europe is also quite uncertain.
Speaker 3: And what I'm.
Speaker 6: Worrying about is if our own problem is, you know,
Speaker 6: in substances amplify the global uncertainty, then maybe we may
Speaker 6: have already you know, must difficult then I'm currently expecting.
Speaker 2: But I think what we are doing is we have
Speaker 2: to adapt whatever what has happened so at this moment,
Speaker 2: whatever happened in politics, whatever happened in britical projections.
Speaker 3: I think the government.
Speaker 2: Offices like US and central bankers in Creer are ready
Speaker 2: to react to you.
Speaker 1: In verses, we talked to say we should race for volatility,
Speaker 1: especially in the Korean one. We've seen it move, you know,
Speaker 1: as low as one and a half percent is recovered somewhat.
Speaker 1: Is there a red line in the sand for the
Speaker 1: Korean one? I mean, at what stage will you be
Speaker 1: defending that currency?
Speaker 2: Ain we Preyer has been on the vext E change
Speaker 2: regime for time, and you know.
Speaker 3: We are not taleting for specific level of the exchanging.
Speaker 2: But on the other hand, because Korean one is not
Speaker 2: international vised, we are concerned on the productivity of our
Speaker 2: exchange day and the pace.
Speaker 3: Of the exchange way movement.
Speaker 2: So technically, using the integrated polict framework, we are trying
Speaker 2: to stibilize the.
Speaker 3: Ever movement or exchangeway.
Speaker 2: But at this moment, I think if you just look
Speaker 2: at what happened yesterday with separ as I mentioned, the
Speaker 2: Korean one t push facts sharply about six percent immediately.
Speaker 2: But now I think we are slightly about the you know,
Speaker 2: level that we had before the this is political event happens.
Speaker 3: So I think in some.
Speaker 7: Sense, using various tools including our agility injection you know
Speaker 7: in the EFTs market too, I think that we are
Speaker 7: now managing the situation better than.
Speaker 3: You know, uh you are some other people. Then, as
Speaker 3: as my.
Speaker 2: Basic point is that if you look at what happened
Speaker 2: now political arena, this tension happened because of the This
Speaker 2: event has happened because of prolifical tensions.
Speaker 3: Not any problem is coming from the munters. So in
Speaker 3: that sense, I.
Speaker 2: Think the impact it would be sure to leave and
Speaker 2: we can focus on the economic strengths and the weakness
Speaker 2: of CRE incoming rather than qualifica.
Speaker 1: Side intact, Governor, For investors looking for some kind of
Speaker 1: clarity on the situation in Korea, what can they expect
Speaker 1: in the next twenty four to forty eight hours from
Speaker 1: where you're seated, what can be expected?
Speaker 3: I can ask what had changed?
Speaker 2: Actually, I think during the night there was six hours
Speaker 2: you know, uncertainty in signing country now bactive. So as
Speaker 2: you mentioned, this may cause a more internal fight among
Speaker 2: the politicians, and you can see those kind of fight.
Speaker 3: I wouldn't mention country's name, but you can see many
Speaker 3: other countries a similar polifical fight at this moment. And
Speaker 3: then you know this kind of fight is.
Speaker 2: Not affecting our fundamentals and change our STOMA operation. And actually,
Speaker 2: if you look at today, our financial market functions very well.
Speaker 3: The risk is there, but I think I'm not downplaying
Speaker 3: the risks. There is a risk, but like an other countries,
Speaker 3: but that risk is given. The nature of the risks
Speaker 3: is within the you know, a range of range of
Speaker 3: the what you can manage.
Speaker 1: Governor, Thank you so much for your time. Governor Yichang
Speaker 1: Yong joining us live from Seaul