Experts from the International Monetary Fund (IMF) and the Bank for International Settlements (BIS) from outside and inside promotions are being floated as the candidates to next governorship at the Bank of Korea.

BOK Governor Lee Ju-yeol would be ending his second term on March 31 after serving eight years under both conservative and liberal presidents.

Rhee Changyong, Director of the Asia and Pacific Department at the IMF, is mentioned as a strong candidate as his successor. He had been a regular candidate for BOK candidate but turned down citing health reason.

Rhee widely knowledgeable in international affairs without strong political affiliation in Korea makes him a candidate that could pass confirmation by the legislative dominated by the Democratic Party which will turn to a supersized opposition when president-elect Yoon Suk-yeol is sworn in in May.

Shin Hyun-song, economic adviser and head of research of at BIS, is another candidate along with BOK Senior Deputy Governor Lee Seung-heon, the central bank’s former senior deputy governor Yoon Myun-shik, and Seoul National University economics professor Kim So-young. The professor however could join Yoon Suk-yeol’s transition team and presidential staff.

President Moon Jae-in has the right to name the next BOK chief. He could discuss with the incoming president for legislative confirmation by mid-March.

Leaving the central bank’s top office vacant long would be costly for the country that needs to come up with prompt actions to deal with the volatile global financial market, while the local economy is under stress from economic fallouts from the prolonged Covid-19 crisis and inflation getting stronger from soaring fuel and commodity prices.

The Korean central bank also needs to replace Lim Ji-won, a monetary policy committee member whose term ends on May 12, in addition to the chief.

The next monetary policy committee meeting is scheduled on April 14. Changing the base interest rate requires at least five of seven committee members to be present and more than half the votes.

By Kim Jung-hwan, Ahn Byung-joon and Cho Jeehyun

[ⓒ Pulse by Maeil Business Newspaper & mk.co.kr, All rights reserved]