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Bank of Korea governor nominee Shin Hyun-song on Wednesday pledged to put price stability at the forefront of policy as South Korea confronts mounting inflation risks and heightened growth uncertainty stemming from the Middle East conflict. At his confirmation hearing, Shin underscored intensifying price pressures and downside risks to economic expansion, vowing to strike an appropriate balance among inflation control, financial stability, and sustainable growth. He warned that inflation could accelerate in the coming months due to rising oil prices and a weakening won, while growth may fall short of current projections. “Given South Korea’s sensitivity to oil prices, I will place greater emphasis on price stability,” he said. Shin is scheduled to succeed Rhee Chang-yong on April 20, ahead of the Bank’s May rate decision, but he offered no explicit policy guidance. He added that the policy path will depend largely on developments in the Middle East, including potential supply disruptions around the Strait of Hormuz.
