Bank of Korea Governor Shin Hyun-song said that a further appreciation of the Korean won would be beneficial, and pointed out that since the Bank of Korea switched to tightening monetary policy, the sharp appreciation of the won has increased household purchasing power. In conversation with IMF Asia Pacific Director Krishna during the International Monetary Fund and World Bank annual meetings in Bangkok on Tuesday, Shin Hyun-song said, “We will maintain a restrictive monetary policy position until we are convinced that inflation can return to the target level in a timely manner.” Shin Hyun-song said that the strengthening of the Korean won makes the economic growth momentum more biased towards the domestic economy, which will help ease the development gap in what he called the “K-type economy.” He added that inflation, exchange rates, and financial stability factors all currently point in the same policy direction, making the policy trade-offs facing the Bank of Korea easier than usual.

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