Who is he?
Mr. Lee Ju-yeol is the new governor of the Bank of Korea (BOK). A 35-year veteran of the bank, Lee had served in a number of key roles. He was a deputy to Governor Kim Chong-soo from 2010 to 2012 and previously played a crucial role as a forecaster during the Asian financial crisis of 1997. Mr. Lee was promoted to be a deputy governor in charge of monetary policy in March 2007. He later became a senior deputy governor and a policy board member of the bank in April 2009. He has a B.A. in business management from Yonsei University, and a M.A. in economics from Pennsylvania State University.
Why has he been in the news?
Lee Ju-yeol took office officially on April 1 to become the 25th governor in the BOK’s history, succeeding Kim Chong-soo, whose four-year term ended on March 31, 2014. The National Assembly confirmed his nomination quickly without any controversy on March 19. According to the newly revised Bank of Korea Act in March 2012, Lee was the first nominee to undergo confirmation hearing from National Assembly. On March 3, 2014, the Blue House nominated Lee Ju-yeol as a new head of the central bank, the top monetary policy job in the fourth largest economy in Asia.
What can we expect from him?
Governor Lee is considered a tried and trusted bureaucrat with impeccable credentials. He is also seen as a policy moderate without any particular hawkish or dovish bias on setting interest rates. When the Blue House announced Lee’s nomination, President Park Geun-hye complimented him for “his senses and judgment on international finance”, as well as for “his strong support within the organization due to his rational thinking and modesty.”
As a governor, Lee is expected to balance between ‘economic growth’ and ‘price stability’ which are seemingly incompatible. On his inauguration ceremony on April 1, he emphasized harmony of these two aims, as well as the reestablishment of the role and duty of the central bank based on economic structure and international environment. In addition, as markets are expecting policy consistency, he stressed trust-based policy through active communication.
Broadly, financial experts are predicting monetary policy continuity from the previous governor under Lee Ju-yeol. Two things to look out for in the coming weeks: whether he will continue to hold the BOK’s main policy rate at 2.5 percent and whether he can improve BOK’s communication with financial markets.
