(Bloomberg) — Bank of Korea officials past and present, presidential advisers and global representatives are among potential successors to central bank Governor Lee Ju-yeol, whose impending departure is fueling speculation over a replacement at a time of elevated inflation.
Lee’s successor will inherit rapidly normalizing monetary policy after two years of extraordinary stimulus to prop up a pandemic-hit economy. Having been cut as low as 0.5%, the policy rate has now returned to its pre-pandemic level of 1.25%. It could move even higher in response to consumer-price growth, although surging virus cases and global uncertainties cloud the outlook.
The appointment will come at a politically sensitive moment, with South Koreans heading to the polls on March 9 to elect a new leader. The president-elect will likely want a say in who helms the central bank. Current President Moon Jae-in hasn’t commented on the issue yet. Lee’s term ends on March 31.
Following are six candidates frequently mentioned in the local media as possible successors to Governor Lee.
Yoon Myun-shik
Yoon served as the BOK’s senior deputy governor from 2017-2020 and now teaches economics at the University of Suwon. The 62-year-old, with a master’s degree in business administration from the University of Colorado, spent the bulk of his three-decade career in the BOK’s policy division.
He has represented the central bank at the Organisation for Economic Co-operation and Development, and a past BOK statement described him as an official “seeking new changes while respecting existing practices.”
When the BOK announced it would supply unlimited liquidity to markets for three months at the onset of the pandemic in 2020, Yoon told reporters that it wouldn’t be “too wrong” to characterize the move as a form of quantitative easing. Yoon didn’t respond to a phone call to his office seeking comment.
Lee Seung-heon
Lee replaced Yoon in August 2020 as senior deputy governor and currently serves as one of seven BOK board members. The 57-year-old has managed a wide range of areas at the central bank from currency to policy and capital flows. He has also represented the BOK in dealings with counterparts like the Federal Reserve and institutions such as the International Monetary Fund.
A BOK statement upon Lee’s promotion highlighted his contributions to the central bank’s smooth running since the pandemic and described him as “abundantly experienced” in monetary policy and global financial markets. His term on the board ends in August 2023.
Both Yoon and Lee have consistently voted in line with the BOK’s board.
Hyun Song Shin
The economic adviser and head of research at the Bank for International Settlements — known as the central bankers’ bank — has long been considered as a potential candidate to head the BOK.
The 62-year-old received his doctoral degree in economics from Oxford University and taught at Princeton University. In 2010, he served as an adviser to then-President Lee Myung-bak, helping shape the agenda for the Group of 20 meeting in South Korea.
The BIS says on its website that his recent focus has been research on central bank digital currencies and their implications. Shin declined to comment on speculation surrounding his potential nomination.
Changyong Rhee
The IMF, where Rhee is director of the Asia and Pacific Department, describes him as a frequent policy adviser to South Korea’s presidential office, finance ministry and central bank. Lee, 61, holds a doctoral degree in economics from Harvard University and served as chief economist at the Asian Development Bank before joining the IMF in 2014.
He hasn’t replied to an email seeking comment.
Ha Joon-kyung
Ha currently advises ruling party presidential candidate Lee Jae-myung. He started his career at the BOK in 1993 and received a doctoral degree in economics at Brown University in 2003. Ha has taught at Hanyang University since 2008 and written and commented on inequality, aging and innovation.
Among his most recent publications are theses on middle-income traps in Asia and the goals of central banks. He has been a proponent of raising property taxes to distribute wealth. Ha hasn’t responded to an email seeking comment.
Kim So-young
The Seoul National University economics professor currently advises leading opposition presidential candidate Yoon Suk-yeol and has been a critic of Moon’s policy of boosting wages to stimulate the economy. Educated at Yale University, the 54-year-old has forged links with the BOK during his career, offering advice, research and lectures at the central bank.
While declining to comment on the speculation, Kim pointed out in a phone call that monetary policy may have been too expansionary, causing a surge in liquidity, and said the next governor will have to remain flexible and discreet as economic uncertainties remain significant.
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