BOK’s Hawkish New Board Member Flags Prices, Housing Risks

The Bank of Korea’s newest board member said lower growth rates were preferable to a financial shock as he underlined his hawkish credentials in inaugural remarks.

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.