South Korea's Ministry of Economy and Finance published a readout of a first meeting between Deputy Prime Minister and Minister of Economy and Finance Koo Yun-cheol and Bank of Korea Governor Shin Hyun-song following the governor’s inauguration, setting out plans to sustain close dialogue and tighten coordination between fiscal and monetary policy. The two sides aligned on the need for close monitoring as risks to weaker growth and higher inflation increase, and agreed to continue cooperation to stabilise financial and foreign exchange markets. The discussion cited persistent uncertainty linked to the Middle East war, higher oil prices and supply-chain instability as key risk factors. Beyond near-term crisis management, the two leaders also agreed on the importance of economic and industrial structural reform to raise growth potential and address polarisation, and exchanged views on priorities including artificial intelligence and the green transition; the deputy prime minister requested the central bank provide deeper analysis and policy recommendations in the structural reform agenda, and the governor agreed to contribute. Going forward, coordination will continue through existing channels such as market situation review meetings, with additional meetings held as needed.

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