(LEAD) President Moon to retain central bank chief

All News 16:33 March 02, 2018

(ATTN: UPDATES with remarks from Cheong Wa Dae spokesman, additional information in paras 4-6)

SEOUL, March 2 (Yonhap) -- President Moon Jae-in decided Friday to retain Bank of Korea (BOK) Gov. Lee Ju-yeol for a new four-year term, the presidential office Cheong Wa Dae said.

The announcement somewhat came as a surprise as Lee was appointed by the ousted former President Park Geun-hye. His first four-year term is set to expire next month.

He has also been considered partly responsible for record high household debts that reached 1,450.9 trillion won (US$1.34 trillion) as of end-2017, while the central bank kept its base interest rate at a record low of 1.25 percent for 16 months before taking its first rate hike in more than six years in November.

"The decision to appoint Gov. Lee Ju-yeol to a second term reflects President Moon Jae-in's willingness to guarantee the independence and autonomy of the Bank of Korea," Cheong Wa Dae spokesman Kim Eui-kyeom told a press briefing. "The U.S. and key nations of Europe ensure stable management of monetary policies by allowing their central bank governors to remain in office for a long time."

Lee still needs to undergo a parliamentary confirmation hearing, though his appointment does not require the parliament's approval.

"Also, the nominee has vast knowledge and experience in macroeconomics and the financial market. He is expected to stably lead the Bank of Korea as he also enjoys the high confidence of bank officials," the spokesman added.

A native of Wonju, Gangwon Province, Lee began working for the central bank in 1977, the same year he graduated from Seoul's Yonsei University with a bachelor's degree in business administration, according to Cheong Wa Dae.