[Gwanga in] Han Eun-seo to Bloomberg... The Inside Story of Elites

Head of Monetary Policy Department Moves to Bloomberg
New Challenge in 20th Year at Bank
Could Set a Precedent for Active Personnel Exchange

"If you are recognized for your abilities at the Bank of Korea, it will serve as a good precedent showing that you can also succeed in the market."

A team leader who received a significant salary increase upon moving from the Bank of Korea (BOK) has become the subject of envy within the bank. The person making the move is Kwon Hyo-seong, head of the Policy Analysis Team at the BOK’s Monetary Policy Department. Kwon is set to start his new role as an economist at Bloomberg Korea on the 30th, right after the BOK’s Monetary Policy Committee meeting this month. Born in 1976, Kwon’s move has attracted attention not just because of the salary but also due to broader evaluations both inside and outside the bank. Now in his 20th year at the BOK, Kwon is a traditional BOK man who has steadily advanced along what is considered an 'elite course' within the institution. After graduating from Seoul National University with a degree in economics, he joined the BOK in 2003 and has gained recognition by working across key departments such as the Monetary Policy Department, Research Department, Human Resources and Management Department, and International Cooperation Department. His decision to leave a stable job for a new challenge has sparked growing curiosity about his reasons.

In an interview with Asia Economy on the 22nd, Kwon explained, "This year marks my 20th year at the BOK, and I felt this might be my last chance to take on a new challenge." He added, "The experience I gained at the BOK, working in the Monetary Policy and Research Departments and comprehensively evaluating government policies, has been a great foundation and asset. I hope to use this as a stepping stone to further demonstrate my capabilities in the market." Kwon will serve as the Korea economist at Bloomberg Korea. Bloomberg established this economist position to properly evaluate and forecast the Korean market, reflecting its growing importance in the global market. Kwon said, "As the economist responsible for the Korean economy, I will handle economic forecasts and analyses of our country, including evaluations of monetary policy. It is an economist role within an investment bank (IB) context, continuing the work I did at the BOK." He expressed, "I was eager to take on a new challenge before it was too late. This is a good opportunity at a time when I felt a change was needed in my life."

One of the things Kwon particularly looks forward to is being able to express his judgments from a freer perspective and share them externally. He explained, "While I was responsible for forecasting and analyzing the Korean economy at the BOK, there were limitations as I had to represent the institution’s voice as a central bank employee. In the market, I will be able to express my views more freely and actively share them with others, so it was an easy decision to make."

Kwon’s move is also interpreted by some as aligning with Governor Lee Chang-yong’s emphasis on communication with external parties and his call for strengthening internal capabilities through active personnel exchanges. Since his inauguration, Governor Lee has urged the BOK to take a more proactive role as the country’s top think tank and encouraged active external activities. He believes internal staff should use opportunities to develop their skills by being dispatched or moving to external organizations. According to the BOK’s rehiring system for former employees, those who leave can rejoin within five years, so employees who move outside have the option to return if they wish. Although not common, there have been cases of employees moving to places like Goldman Sachs and then returning to the BOK. Kwon added, "As the governor said, I hope BOK employees going out to the market and those coming in from outside can build their skills through exchanges."

However, Kwon cautioned against interpreting his move as a reaction to recent complaints within the BOK about lower salaries and welfare levels compared to other financial institutions. He emphasized, "The rehiring system can be a good option for employees who leave, and it can be an opportunity to broaden one’s horizons externally." Recently, there has been an increase in young BOK employees raising their market value and moving on. Last year, a manager from the Research Department moved to Korea Investment & Securities, and a regional office manager moved to Korea Securities Finance. There have also been cases of moves from the Financial Settlement Department to Toss, as well as to accounting firms.

This wave of departures among BOK employees is seen by many as reflecting the bank’s diminished status compared to the past. Yoo Hee-jun, chairman of the BOK labor union, lamented, "Previously, the prestige and pride of being a BOK employee, along with the stability of being able to work until retirement, attracted mainly graduates from certain universities. But recently, dissatisfaction with lower salaries compared to the same industry and wage increases far below inflation has accelerated employee departures." An analysis of the universities attended by 63 new hires this year shows a diversification from 14 universities in 2022 to 22 this year, unlike the past concentration on specific schools. A BOK official said, "The starting salary for new comprehensive planning staff (G5) hired this year is 51 million KRW, which is not high in the banking sector. Compared to large companies that pay substantial bonuses, there is a relative sense of deprivation, so the BOK, once called a 'godly workplace,' is no longer as popular among the MZ generation (Millennials + Generation Z) as it used to be."