In his inaugural address as Governor, Hyun Song Shin set out the Bank of Korea’s priorities for the next four years, centering on prudent and flexible monetary policy amid heightened inflation and growth uncertainty, a revamped approach to financial stability as risks extend beyond traditional banking, and upgraded payment, settlement and foreign exchange infrastructure to support a more international and digital role for the Korean won. He also framed domestic structural challenges, including demographics, polarization, real estate and household debt, as integral to monetary policy conditions and a focus for the central bank’s research and policy advice. On monetary policy, the agenda includes reassessing policy instruments to better manage trade-offs among objectives, coordinating with the government where appropriate, and strengthening two-way communication with markets. For financial stability, the Bank plans to enhance early warning by using market-based price indicators alongside conventional prudential indicators, broaden analysis to reflect non-bank growth and cross-market linkages, and incorporate off-balance-sheet activity and non-traditional products while improving access to non-bank information. On the won’s internationalization, the Bank will work with the government to pursue 24-hour foreign exchange market operations and establish offshore won settlement systems, and it will advance preparations for digital finance through Phase 2 of Project Hangang to expand the use of central bank digital currency and tokenized deposits, supported by international cooperation including Project Agorá and further work on an aligned macroprudential framework. Shin also flagged internal priorities aimed at enabling delivery, including breaking down functional silos, strengthening feedback loops between research and policy, improving organizational productivity through digital technology and data architecture, and increasing the Bank’s participation in international forums such as the Bank for International Settlements and the International Monetary Fund.
Bank of Korea 2026-04-21
Bank of Korea Governor Hyun Song Shin sets four-year agenda to reassess policy tools and advance won internationalization and digital money projects
In his inaugural address, Governor Hyun Song Shin set the Bank of Korea’s four-year priorities: prudent, flexible monetary policy amid inflation and growth uncertainty; a revamped financial stability framework covering non-bank and cross-market risks; and upgraded payment, settlement and FX infrastructure for a more international, digital won. The Bank will reassess policy tools, enhance market-based early warning, pursue 24-hour FX trading and offshore won settlement, and advance CBDC and tokenized deposits via Project Hangang and related international work, while breaking down internal silos, strengthening research–policy feedback, improving digital and data capabilities, and deepening international engagement.