[Manbo Jeongdam] "Balance is Important in Body, Mind, and Workplace... Life is a Process of Finding the Equilibrium Point"

Lee Seungheon, Deputy Governor of the Bank of Korea, Approaching the End of 32 Years at the Bank

"To break through 'water,' which is too fluid to grasp and too thick to pass through, you must maintain good body balance."

Lee Seung-heon, Deputy Governor of the Bank of Korea, is a self-proclaimed swimming enthusiast. Since joining the Bank of Korea in 1991, swimming has been one of the driving forces that sustained his over 30 years of service through numerous challenges such as the 1997 Asian Financial Crisis and the 2008 Global Financial Crisis. On the 14th of last month, while walking along the stone wall path beside Deoksugung Palace on Sejong-daero in Jung-gu, Seoul, Lee answered without hesitation when asked by a reporter about the secret to his health: "Swimming." Standing out with his tall stature of 180 cm and solid physique even from a distance, Deputy Governor Lee continued his praise of swimming. "Swimming may seem like a simple exercise, but the more you do it, the harder it becomes," he said, emphasizing that "to break through the high-density water, the key is to minimize body resistance, increase propulsion, and maintain a streamlined posture."

In mid-April, when the cherry blossoms had fallen and light green leaves filled the gaps, I met and walked with Lee Seung-heon, the Vice Governor of the Bank of Korea, on Jeoldam-gil in Jeongdong-gil just after the spring rain had stopped. Vice Governor Lee, whose father was a displaced person and loved growing plants while longing for his hometown, even had a greenhouse garden at home, and watering the plants was always his responsibility. He smiled brightly, saying, "I am glad that the flowers are blooming in spring." Photo by Yoon Dong-joo doso7@

Having just finished his early morning swim before coming to work that day, Deputy Governor Lee laughed, saying, "I was once obsessed with swimming." He began early morning swimming during the 2008 financial crisis. At that time, as the head of the Financial Markets Department, he often worked overtime past midnight preparing materials for the Monetary Policy Committee meetings. After leaving work well past midnight, he would arrive home after about an hour, sleep for only three hours, then get up at 5 a.m. to head to the swimming pool. Amid stressful and demanding work, swimming became a daily routine and part of his life. Lee said, "Swimming is an excellent exercise for maintaining body balance and improving flexibility," calling it "one of the best choices I have made in life." There was a time when he briefly considered quitting the Bank of Korea due to the difficulties of the job, but swimming helped him regain his composure. "Balance is important not only for body and mind but also in work and human relationships," he shared, hinting that he learned how to find life's balance through swimming.

He also shared memories related to swimming with colleagues. While serving as the head of the International Department, Lee was the inaugural president of the Bank of Korea's swimming club, "Joyful Swimming." He and six club members challenged the "Hangang Cross Swimming Challenge," swimming back and forth across the Han River near the southern end of Jamsil Bridge. During the swim, a female research officer paired with him suffered a leg cramp and was unable to move. In a hurry, Lee grabbed her neck and handed her over to rescue personnel. However, the woman did not appear at the destination for quite some time. Just as Lee was getting anxious, he spotted the familiar figure of the research officer. Despite the leg cramp, she had held onto the rope and completed the swim without giving up. Lee said, "It was an emergency situation, but I once again felt the spirit and courage of the Bank of Korea’s female staff."

Lee Seung-heon, Deputy Governor of the Bank of Korea. Photo by Dongju Yoon doso7@

Bank of Korea’s Leading International Expert... Checks Exchange Rates First Thing Upon Waking

Deputy Governor Lee has worked in various policy departments, including the International Department and Financial Markets Department, and served as the head of public relations overseeing external communications. With deep understanding of international economics and finance, he is recognized as one of the Bank of Korea’s leading 'international experts.' Lee said, "My eyes were opened to international finance during my secondment to the IMF Executive Office, which led me to transfer to the International Department and deepen my understanding of the foreign exchange market." He added, "My habit is to start the day by checking exchange rates and continuously monitor international situations, including unfiltered information flooding Twitter."

With the won-dollar exchange rate recently surpassing 1,340 won and soaring, Lee predicted that the exchange rate would show a different pattern this year compared to last year. He explained, "Last year, the US dollar strengthened rapidly due to aggressive monetary tightening in the US, and the won weakened quickly in response. However, since November last year, the US dollar has weakened due to the Federal Reserve’s slowing pace of rate hikes, and the won is basically following that trend while fluctuating based on trade balance flows and concerns about financial instability in major countries." He said, "Basically, unlike last year, the won cannot escape the weakening trend of the US dollar, and the market is gradually forecasting a decline." Regarding concerns about the widening interest rate gap between Korea and the US after the Federal Open Market Committee (FOMC) raised US policy rates by 0.25 percentage points on the 3rd (local time), Lee said, "The interest rate differential is an important factor influencing exchange rate trends, but the relationship between interest rate differentials and exchange rates is not a one-to-one mechanical function." He added, "Exchange rates ultimately reflect fundamental differences between two countries, so the impact of each country’s policy decisions on inflation and growth is more important than the interest rate gap itself." While exchange rates may fluctuate temporarily due to US tightening effects, he forecasted a gradual downward stabilization trend in the long term.

Organic Cooperation Needed Based on Distinct Roles of Bank of Korea and Government

Although the consumer price inflation rate in April slowed to the 3% range for the first time in 14 months, core inflation remains stubbornly high. Deputy Governor Lee emphasized, "High inflation must be controlled, and it can be controlled." He explained, "If inflation is caused by a one-time supply shock, prices will return to normal within a year, so the Bank of Korea does not need to respond. However, this inflation shock is underpinned by significant demand pressures formed during the COVID-19 period, so it must be lowered to an appropriate level for prices to stabilize again." He noted that rapid rate hikes can cause various side effects, so it is important to observe their impact and decide on further increases accordingly. Lee dismissed concerns that the Bank of Korea’s forecasted economic growth rate for Korea this year, slightly below the previous 1.6% projection, would cause central bank dilemmas between inflation and growth. "If you keep stimulating the economy out of fear of slowing growth, you won’t be able to control inflation," he said. He questioned, "How can you control inflation without economic slowdown?" and added, "You can grow only after controlling inflation."

Regarding the need for a proper tension between the central bank responsible for inflation and the government prioritizing growth, Lee stressed, "The Bank of Korea is an important national institution tasked with price stability and financial stability." He emphasized, "Although the government and the Bank of Korea have different specific goals and policy tools, their paths cannot differ because both aim to stabilize and develop the national economy." He said they must cooperate organically based on their respective roles.

Lee Seung-heon, Deputy Governor of the Bank of Korea. Photo by Dongju Yoon doso7@

Reoccupying Bank of Korea Headquarters After Six Years... A Symbol of Change

In the season when fresh green leaves fill the gaps left by the fallen cherry blossoms along Jeongdong-gil, this spring is especially meaningful for Deputy Governor Lee. The Bank of Korea completed about six years of construction and remodeling of its headquarters building and moved back into the new building. On the 24th of last month, the Bank of Korea held a completion ceremony at its headquarters on Namdaemun-ro, Jung-gu, Seoul. After leaving the rented space in the Samsung Main Building on Sejong-daero, the return to the headquarters has sparked anticipation for new changes within the Bank. Lee said, "Above all, it feels like coming back to my hometown," adding, "It is significant in that we have expanded beyond the existing workspaces." He particularly emphasized that reoccupying the building itself symbolizes change. The improved interior environment and the physical securing of spaces such as meeting rooms where Bank of Korea staff can communicate with the outside world have created a stage for change.

Lee expressed his expectation that "the new building will transform into a core space for implementing the mid-to-long-term development strategy 'BOK2030,' which the Bank of Korea established in 2020 to mark its 70th anniversary." Lee, who led the formulation of BOK2030 aimed at spreading a horizontal organizational culture to boost dynamism and enhance staff expertise, confessed that when the strategy was first announced, the organization was filled with fear and skepticism. Attempts to change the conservative and vertical culture of the Bank of Korea had been made several times in the past but were unsuccessful, leaving only wounds and fears, making the process of driving change difficult. However, recently, this atmosphere has been rapidly changing. Lee pointed out, "The most important recent change is that the organization has begun to change." The driving force behind this change is Governor Lee Chang-yong. Since Governor Lee, who gained diverse experience at international organizations such as the Asian Development Bank (ADB) and the International Monetary Fund (IMF), took office in April last year, strong momentum has been gained, and the inertia of change has begun to take root within the organization.

The Bank of Korea headquarters on Namdaemun-ro, Jung-gu, Seoul, after approximately six years of building construction and remodeling work

Deputy Governor Lee said, "Turning a large structure requires a lot of initial power," adding, "Like a car that consumes a lot of energy when starting but then only needs a little acceleration, the Bank of Korea organization is in a situation where acceleration is needed to overcome resistance, and Governor Lee is steering and pressing the accelerator." He said, "When attempting change, there are times of failure and frustration, but the important thing is that it does not seem like we will go backward in the next three years," adding, "The efforts to promote change and innovation over the past four years combined with Governor Lee’s leadership are building confidence in change."

The core of BOK2030 is "qualitative improvement of research and investigation." Recently, the report format was changed from bullet points to narrative style to enhance communication, and the horizontal review process was significantly strengthened. Instead of the simplified reporting system where team members write reports that pass through team leaders and department heads, a mid-stage discussion process was established allowing related organizations, other teams, and even external institutions like the Financial Supervisory Service to review and comment on reports. The future use of these reports is also disclosed. In the first half of this year, the Bank introduced a department-division-team system, delegating authority sequentially from the governor and deputy governors to each position to speed up decision-making and strengthen the role of middle managers such as department heads. Lee said, "Department heads in their 50s are the backbone of the Bank of Korea, but due to personnel stagnation and lack of space, they were underutilized," adding, "We are implementing the department-division-team system to properly utilize hidden talents and are currently revising the evaluation system." The Bank of Korea is also accelerating digital innovation through the introduction of artificial intelligence (AI). Recently, with the spotlight on ChatGPT, they are researching ways to use it as an auxiliary tool to improve internal work efficiency.

With his term expiring in about three months this August, Deputy Governor Lee urged Bank of Korea staff to ask themselves the fundamental question, "What is the Bank of Korea?" Lee said, "The reason I chose the Bank of Korea among many workplaces when I joined was because of my strong sense of social participation," adding, "Ultimately, I hope that while working at the Bank of Korea, everyone can continuously think about the role of the central bank and how we can contribute to society."

Lee Seung-heon, Deputy Governor of the Bank of Korea, is seen walking along the stone wall path next to Deoksugung Palace on Sejong-daero, Jung-gu, Seoul, on the 14th of last month, talking with reporters. Jeongdong-gil is the site of the former family court, so many couples undergoing divorce trials visited, leading to the superstition that "walking this path together means breaking up." Deputy Governor Lee joked that he has never walked this path with his wife. Photo by Dongju Yoon doso7@