Isuhyung, a member of the Monetary Policy Committee, says "Economic impact of political turmoil may last about three months if lucky"

CNBC Broadcast Interview

Lee Soo-hyung, a member of the Monetary Policy Committee of the Bank of Korea, said that considering the past two impeachment experiences, the economic impact of political turmoil would last about three months if luck is on our side.

Lee Soo-hyung, a member of the Monetary Policy Committee of the Bank of Korea, is speaking in an interview on CNBC on the 2nd. (Photo by CNBC live broadcast screen capture)

In an interview with the US CNBC on the 2nd, Lee said, "During the past two impeachments, uncertainty was resolved within 3 to 6 months," and added, "This time as well, it probably will not have too severe an impact."

He continued, "Political uncertainty can act as a downside risk to economic growth," and said, "The Korean economy has shown considerable resilience over the past 20 years, so I am cautiously optimistic about the economic situation."

Regarding the recent sharp rise in the won-dollar exchange rate, he said, "We are not targeting a specific exchange rate level, and what we are concerned about is excessive volatility," adding, "If market volatility expands sharply, we have policy tools to respond accordingly."

He further stated, "Subject to my personal opinion, considering domestic political turmoil and uncertainties surrounding the new US administration, the market's reaction is understandable, but I believe that once uncertainty is resolved, the exchange rate will also stabilize."

Lee also mentioned that the Macroeconomic and Financial Issues Meeting (F4 meeting) is functioning normally. He said, "Since the inauguration of Bank of Korea Governor Lee Chang-yong, policy officials have been meeting weekly to communicate," and added, "Collaboration and coordination among the four authorities are very important assets for us."