Bank of Korea Governor: Further appreciation of the Korean won is beneficial to the economy, and restrictive monetary policy will be maintained.

October 13: Bank of Korea Governor Shin Hyun-song said further appreciation of the Korean won would be beneficial, noting that the won's significant appreciation since the Bank of Korea shifted to a tightening monetary policy stance has enhanced household purchasing power.

Speaking on Tuesday during a dialogue with IMF Asia-Pacific Department Director Krishna on the sidelines of the IMF and World Bank annual meetings in Bangkok, Shin said: "We will maintain a restrictive monetary policy stance until we are confident that inflation will return to the target level in a timely manner."

Shin said the stronger won has shifted growth momentum more toward the domestic economy, helping to ease what he called development gaps in a "K-shaped economy." He added that inflation, exchange rate and financial stability factors currently all point in the same policy direction, making the Bank of Korea's policy trade-offs easier than usual.