The Bank of Korea (BOK) on Monday unveiled names of four nominees to join its monetary committee to replace the members whose tenure expires on Apr. 20. The nominees are Cho Dong-chul, professor at the Korea Development Institute School of Public Policy and Management, Lee Il-houng, president of the Korea Institute for International Economic Policy, Koh Seung-beom, standing commissioner of the Financial Services Commission (FSC), and Shin In-seok, head of the Korea Capital Market Institute.

The central bank’s monetary policy committee is composed of seven members and it sets the country’s base rate every month. The BOK Governor and Senior Deputy Governor are ex officio members of the board while others are each recommended by the Minister of Strategy and Finance, Chairman of the FSC, Governor of the BOK, Chairman of the Korea Chamber of Commerce and Industry (KCCI) and Chairman of the Korea Federation of Banks. They all need to be approved by the President. Members serve four years and are eligible for reappointment, although this has been unprecedented.

Cho was nominated by the Ministry of Strategy and Finance, Lee by the BOK, Koh by the FSC, and Shin by the KCCI. The term for four outgoing members - Ha Sung-keun, Chung Hae-bang, Chung Soon-won and Moon Woo-sik - is expected to expire on Apr. 20, a day after they attend their last monetary policy committee meeting.

Meanwhile, the fresh composition of the monetary board suggests more uncertainty in policy decision due to bigger centrist weight in the committee currently mixed between members calling for preemptive cuts to stimulate the economy and those advocating for higher rates with more policy weight on consumer prices.

The two BOK members on the board fall into the hawkish category while the two nominees fielded by government members would side with the government in expansionary position. Incoming Shin and two other existing members are neutral.

By Lee Sang-duk, Kim Hye-soon, Chung Ui-hyun

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