Bank of Korea’s New Board Member Flags Inflation, Housing Risks

The Bank of Korea’s newest board member highlighted mounting inflation and financial-stability risks tied to the Middle East conflict, housing prices and capital flows in his inaugural remarks Friday, reinforcing expectations the central bank is moving toward a hawkish bias.

Kim Jin Ill, a former Federal Reserve economist and Korea University professor who officially began his term on Friday, said inflation concerns have “intensified further” due to higher oil prices stemming from the war in Iran. He also warned that household debt and housing price concerns remain unresolved, while risks linked to capital flows have grown as Korea becomes more integrated with global financial markets.