Shin Hyun-song Emphasizes Independence of Monetary Policy: "The Central Bank Must Be the Focal Point of Trust"

Confirmation Hearing for Bank of Korea Governor Nominee

Shin Hyun-song, the nominee for Governor of the Bank of Korea, emphasized the independence of monetary policy on April 15, stating, "The central bank must be the focal point of trust."

Shin Hyun-song, the nominee for Governor of the Bank of Korea, is attending the confirmation hearing held by the National Assembly's Finance and Economy Committee on the 15th and responding to lawmakers' questions. 2026.4.15 Photo by Kim Hyunmin

During his confirmation hearing at the National Assembly's Finance and Economy Committee that day, nominee Shin responded to Rep. Park Sunghoon of the People Power Party, who remarked, "Your convictions as a scholar seem to have faded, and instead you appear to be representing the government's position." Shin replied, "There is no need for concern on that point," making his stance clear.

Rep. Park criticized nominee Shin's position that supplementary budgets (extra budgets) have limited impact on inflation, citing Shin's previous remarks that "lax fiscal policy, if combined with monetary policy, could lead to inflation."

In response, Shin dismissed the criticism, saying, "My previous remarks reflect my convictions, and my principles are very clear." He added, "Fiscal Theory of the Price Level (FTPL) ultimately shows the consequences resulting from unsustainable fiscal policy. Fiscal sustainability is extremely important. Only when that foundation exists can monetary policy operate independently, and a framework for complementary management can be established."

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