Bank of Korea Governor Shin Hyun-song stated today (the 29th), "We judge that it is necessary to continue the rate-hiking stance going forward."

During a work report to the National Assembly's Strategy and Finance Committee, Governor Shin said, "We plan to determine the timing and pace of additional hikes while examining the degree of inflation pressure, the economic recovery trend, and financial stability conditions."

Regarding the South Korean economic situation, he noted, "The semiconductor boom is continuing, and its impact is gradually spreading to other sectors, which is expected to sustain a solid growth trend."

He added, "While uncertainties regarding international oil price movements due to the situation in the Middle East persist, the effects of previously elevated costs and exchange rates will continue, and demand-side pressures driven by income improvements will gradually expand. As a result, inflation is projected to remain above the target level for a considerable period."

Regarding the financial and foreign exchange markets, he assessed, "As external uncertainties have increased, the volatility of major pricing variables has expanded."

On the won-dollar exchange rate, he remarked, "After rising significantly due to ongoing uncertainties surrounding the Middle East crisis and a strong U.S. dollar, it declined to the mid-to-upper 1,400 won range following improvements in foreign exchange supply and demand since July."

Regarding stock prices, he said, "They experienced significant adjustments with high volatility, driven by concerns over AI investments and massive net selling of stocks by foreign investors."

Governor Shin assessed, "Despite high uncertainties in external conditions, the domestic financial system is maintaining a generally stable appearance, supported by the expansion of real economic growth and the sound resilience of financial institutions."

He also mentioned, "However, risks such as the accumulation of financial imbalances driven by high volatility in financial and foreign exchange markets and the expanding rise in housing prices in the greater Seoul area remain sources of instability."

Meanwhile, prior to the work report that day, Governor Shin repeatedly apologized for the controversy surrounding his children's nationalities, which had surfaced during the confirmation hearing process.

In response to a request from People Power Party lawmaker Lim이자 to issue an official apology regarding suspicions of false address registration stemming from his eldest daughter's failure to report the loss of South Korean nationality, Governor Shin said, "I offer my apologies to the public as the confirmation hearing process did not go smoothly," adding, "The issue regarding the children's nationalities has now been fully resolved."

(Photo: Yonhap News)