Hyun Song Shin nominated as Bank of Korea governor

The Bank for International Settlements’ former top economist, Hyun Song Shin, has been nominated to lead South Korea’s central bank. 

President Lee Jae-myung nominated Shin for the role on March 22, according to a statement. Shin will replace Rhee Chang-yong when his term expires on April 20.

Shin’s duties at the BIS ceased as of March 22, according to a statement issued that day by the institution. He had most recently headed the BIS’s economic and monetary department.

Shin said the appointment was an honour and that he felt a heavy responsibility for leading the Bank of Korea’s monetary policy “at such a critical juncture”. According to South Korea’s Yonhap News Agency, Shin said: “The recent rapid shifts in the Middle East situation have further heightened volatility in financial and foreign exchange markets, as well as uncertainty in the economic outlook.”

“I will carefully consider how to conduct a balanced monetary policy that takes into account inflation, growth and financial stability,“ he added.

Shin’s appointment to the BoK governorship will be subject to parliamentary hearings and a formal presidential confirmation before it is made official.

BIS general manager Pablo Hernández de Cos congratulated Shin on his nomination. “[Shin] is widely respected within the economics profession and central banking community as a thought leader and trusted adviser and is an excellent candidate for governor,” he said. 

Shin joined the BIS in 2014. In addition to his work on economic and monetary policy, he focused on the impact of digital innovation on the financial system and served as head of the institution’s Innovation Hub in 2019.

He previously held roles at Princeton University, Oxford University, the London School of Economics, the International Monetary Fund and as an adviser to the South Korean president. Shin is also well known for having warned of excessive borrowing ahead of the 2008 financial crisis. 

The BIS announced on March 16 that Hélène Rey, a professor of economics at the London Business School, had been appointed to lead the BIS’s monetary and economic department for a five-year term beginning in September. The monetary and economic department is to be led by Frank Smets until then.