Lee Chang-yong: "If the Deputy Prime Minister of Economy is impeached, foreigners will view it negatively"

On the Eve of the Monetary Policy Committee Meeting
"Interest Rate Is in a Lowering Cycle"

Lee Chang-yong, Governor of the Bank of Korea, said on the 16th, "Although it is a very political situation, if we think only in terms of facts, such a change (the impeachment of the Deputy Prime Minister for Economy) would be viewed negatively (by foreign countries)."

Yonhap News

Governor Lee appeared as a witness at the hearing on the impeachment of Choi Sang-mok, Deputy Prime Minister for Economy and Minister of Economy and Finance, held by the National Assembly's Legislation and Judiciary Committee on the same day. In response to a question from Yoo Sang-beom, a member of the People Power Party, asking, "If the Deputy Prime Minister for Economy is impeached, how would foreign countries view the situation in Korea?" he answered as above.

When Park Jun-tae, a member of the People Power Party, asked, "Would attempts to impeach or criminally prosecute cabinet members negatively affect our country's external credibility?" Governor Lee said, "Overall political uncertainty affects the (national) credit rating."

Regarding questions from ruling and opposition party lawmakers at the macroeconomic and financial issues meeting (F4 meeting) held on December 3 last year, the day the emergency martial law was declared, about whether follow-up measures such as contingency funds were discussed, he said, "We decided to meet again at 7 a.m. to decide whether to open the stock market, and until then, each institution was to bring measures to stabilize the market, but follow-up measures for martial law were not discussed."

In response to Chairman Jung Cheong-rae of the Legislation and Judiciary Committee asking, "If there is anything to inform the public regarding interest rate policy, please tell us," he replied, "The current base interest rate is in a lowering cycle."

Governor Lee said, "There is a Monetary Policy Committee meeting tomorrow (the 17th), so I cannot provide detailed remarks," adding, "Even though there has been harm to the public due to inflation rising to 6% over the past two years, we raised interest rates to curb inflation."

When Chairman Jung asked again, "Are you going to announce an interest rate cut tomorrow?" Governor Lee replied, "I did not say that; I said it is in a lowering cycle."