From Wikipedia, the free encyclopedia Bank of Korea
Bank of Korea
Bank of Korea acute shortage of resources and the division of the coun-
???? Hanguk Eunhaeng try along the 38th parallel was the immediate priority.
In this situation, discussions raged across the country
on establishing a central bank for the Republic of Korea
and Dr. A. I. Bloomfield, dispatched from the Federal Re-
serve Bank of New York, drafted the Bank of Korea Act.
Based on this draft, the Bank of Korea Act was passed
in May 1950 and the Bank launched its operations as a
Bank of Korea Signature central bank on June 12, 1950. It was given a wide range
of functions in relation to monetary & financial policy,
Headquarters Jung-gu, Seoul, South Korea
bank supervision, and foreign exchange policy.
Coordinates 37°33′43″N 126°58′50″E / 37.562°N
126.980661°E / 37.562; 126.980661
Primary Purpose
Established June 12, 1950
The primary purpose of the Bank is to pursue price sta-
Governor Choongsoo Kim bility.
bility
Central bank South Korea Under the Bank of Korea Act (Article 1), the primary
of purpose of the Bank is pursuing price stability so as to
contribute to the sound development of the national
Currency South Korean won
economy.
ISO 4217 KRW
Code The purchasing power of money depends on prices.
When prices rise, the same amount of money buys less
Base 3.00% than before. Therefore, it is naturally the task of a central
borrowing
bank to safeguard the value of the money by keeping in-
rate
flation low.
Website http://eng.bok.or.kr Prices are influenced by various factors such as cor-
porate investment, household consumption and inter-
Bank of Korea national prices of raw materials. Meanwhile, among the
various policy instruments to bring about price stability,
Hangul ????
the monetary policy of a central bank, which adjusts the
Hanja 韓國銀行 quantity of money in circulation, is the most effective.
Revised Romanization Hanguk Eunhaeng
For these reasons, the responsibility for price stabili-
ty is given to central banks in most countries. The Bank
McCune–Reischauer Han’guk Ŭnhaeng sets and announces an inflation target for a certain peri-
od and strives to meet this target. The 2010–12 target is
The Bank of Korea (BOK) is the central bank of South consumer price inflation of 3.0± 1%.
Korea and issuer of South Korean won. It was established
on June 12, 1950 at Seoul, South Korea.
The Bank’s primary purpose is price stability. For Organization
that, the Bank targets inflation. The 2010–12 target is
consumer price inflation of 3.0 ± 1%. Monetary Policy Committee
At the apex of the Bank of Korea’s organization is the
History Monetary Policy Committee (Geumnyung Tonghwa Wiwon-
hoe). The Committee’s prime function is the formulation
The Bank of Korea was established on June 12, 1950 under of monetary and credit policies. In addition, the Commit-
the Bank of Korea Act. tee deliberates and resolves on major matters concerning
Following liberation on August 15, 1945, the Korean the operations of the Bank of Korea.
economy was plunged into turmoil. Tackling the severe The Monetary Policy Committee is composed of sev-
inflation and financial disorder brought about by an en members representing various groups in the national
economy: 1) the Governor, ex-officio; 2) the Senior
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From Wikipedia, the free encyclopedia Bank of Korea
Deputy Governor, ex-officio; 3) one member recommend- sentative offices in major international financial centers,
ed by the Minister of Strategy and Finance; 4) one mem- such as New York, Frankfurt, Tokyo, London, Beijing.
ber recommended by the Governor; 5) one member rec- The Auditor, appointed by the President on the rec-
ommended by the Chairman of the Financial Services ommendation of the Minister of Strategy and Finance, in-
Commission; 6) one member recommended by the Chair- spects the operations of the Bank of Korea and reports
man of the Korea Chamber of Commerce & Industry; 7) the results to the Monetary Policy Committee. The Audi-
one member recommended by the Chairman of the Korea tor prepares and submits a comprehensive audit report
Federation of Banks. to the government and Monetary Policy Committee each
The members are appointed by the President for year. The term of the Auditor is three years and he or she
four-year terms except the Senior Deputy Governor may be reappointed only once.
whose term is three years and are eligible for reappoint- (See the Organization of Bank of Korea)
ment. All members serve on a full-time basis and no
member may be discharged from office against his will.
The Governor serves concurrently as the Chairman of the
Functions
Committee.
Issuing Banknotes and Coins
Executive and Auditor The Bank of Korea has the exclusive right to issue ban-
The executive of the Bank of Korea consists of the Gover- knotes and coins in the Republic of Korea. Their dimen-
nor, the Senior Deputy Governor, and five or fewer sions, designs and denominations are determined by the
Deputy Governors. Monetary Policy Committee with Government approval.
The Governor, appointed by the President on the de- The banknotes and coins thus issued have the status of
liberation of the State Council, represents the Bank. The legal tender within the country for all transactions, both
term of office of the Governor is four years and he or she public and private, without limitation.
may be reappointed only once. The Governor conducts Currently, there are four different denominations of
policies formulated by the Monetary Policy Committee banknotes in circulation: ?1,000, ?5,000, ?10,000 and
as the chief executive officer of the Bank. He or she also ?50,000
keeps the Committee informed about current matters re- and coins in six : ?1, ?5, ?10, ?50, ?100 and ?500.
quiring its attention and provides it with materials and
advice necessary for the resolution of its policies. In addi- Conducting Monetary and Credit Policy
tion, the Governor may attend and state his or her opin- The most important mission of the Bank of Korea is for-
ion on matters related to money and credit at the State mulating and implementing monetary and credit policy.
Council. This is a process of controlling the supply or cost of mon-
The Senior Deputy Governor assists the Governor and ey in order that the economy may grow in a sound man-
is appointed by the President upon the recommendation ner on the basis of price stability. To this end, the Bank
of the Governor. The Deputy Governors are appointed conducts monetary and credit policy with an emphasis
by the Governor and undertake their respective duties on price stability while taking into consideration such
in the manner stipulated in the Articles of Incorporation matters as economic growth and financial market stabil-
of the Bank of Korea. The term of office of the Senior ity.
Deputy Governor and each of the Deputy Governors is In order to achieve the ultimate goal of maintaining
three years and they may be reappointed only once. price stability, the Monetary Policy Committee of the
Bank sets the Base Rate every month after overall consid-
eration of price movements, economic activity and finan-
cial market conditions. Then the Bank steers the call rate
to converge on the newly-set level of the Base Rate using
its policy instruments. The change in the call rate affects
market interest rates such as yields on CDs and Treasury
bonds, and banks’ deposit and loan interest rates. These
changes in interest rates tend to influence consumption
and investments and, as a result, inflation.
The Bank’s monetary policy is conducted mainly
Bank of Korea in Seoul through open market operations, apart from which the
Bank uses lending and deposit facilities and reserve re-
As for its executive body in detail, The Bank has 15 quirements policy.
departments in its head office in Seoul, and 16 branches
in major cities. In addition, it has five overseas repre-
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From Wikipedia, the free encyclopedia Bank of Korea
Bankers’ Bank and Government’s Bank The Bank carries out research on national and world-
wide economic developments in order to formulate ef-
The Bank of Korea makes loans to and receives deposits
fective monetary policy and help advise the government
from banks, thus serving as the banker to the banking
on various economic policy options. It also publishes var-
sector.
ious periodicals, such as the Annual Report and the
The Bank conducts credit operations with banks by
Monthly and Quarterly Bulletins, to provide accurate and
rediscounting commercial bills or by extending loans
up-to-date information on the economy to the public.
against eligible collateral with maturities of up to one
year.
As the lender of last resort, the Bank may extend ex-
Carrying out Foreign Exchange Business
ceptional loans to banking institutions in periods of seri- and Managing the Official Foreign Re-
ous emergency. serves
As the fiscal agent of the government of the Republic The Bank of Korea does not have targets for the exchange
of Korea, the Bank of Korea carries out various kinds of rate and leaves it to be determined in the market. The
businesses for the government in accordance with the Bank, however, does occasionally conduct smoothing op-
Bank of Korea Act and other relevant laws. erations in concert with the government in order to
moderate disorderly movements prompted by herd be-
Developing and Managing Payment Sys- havior and the like.
tems To enhance the soundness of the foreign exchange
The Bank of Korea has onus for the operation and man- sector, the Bank strives to maintain Korea’s external
agement of the nation’s payment systems. debts at an appropriate level through monitoring inflows
The Bank provides settlement facilities to financial and outflows of foreign exchange and inspects and over-
intermediaries by use of their current accounts with the sees the foreign exchange transactions of banks. The
Bank for final settlement purposes. Bank also enters into currency swap agreements with
The Bank operated a real-time gross settlement sys- other central banks to ensure ready access to foreign cur-
tem for large-value interbank fund transfers, named rencies when markets are disorderly.
BOK-Wire, since mid-December 1994. BOK-Wire was re- The Bank holds and manages the nation’s foreign re-
named BOK-Wire+ in April 2009, when a hybrid system serves at an appropriate level so that they serve as a
was added to the system with such features as a continu- safeguard in emergencies. The Bank invests the reserves
ous bilateral and multilateral offsetting mechanism. mainly in safe and liquid foreign financial assets and
strives to improve their profitability insofar as this does
Conducting Supervisory Functions for not detract from their safety.
Financial Institutions Promoting Cooperation with Other Cen-
The Bank of Korea conducts supervisory functions for fi-
nancial institutions as stipulated in the Bank of Korea Act
tral Banks
and other related financial acts. The Bank may request The Bank maintains close cooperation with other central
information from banks and from non-bank financial in- banks and exchanges information and views with other
stitutions that enter into agreements to hold current ac- policy-makers within multilateral organizations such as
count with it, when it deems necessary for the imple- the BIS and IMF. The Bank also holds international sem-
mentation of monetary policy. inars and workshops to share the nation’s experience in
The Bank may request the Financial Supervisory Ser- having achieved remarkable economic development and
vice (FSS) to examine financial institutions within a de- overcoming financial crises. In recent years, The Bank
termined specific range. It may also require the FSS to has taken a leading role in establishing a global financial
have staff of the Bank participate on a joint basis in the safety net as the central bank of the G-20 Summit chair
examination of financial institutions. nation.
Compilation of Statistics and Economic Governors of the Bank of Korea
Research
The Bank compiles statistics which are essential to devel-
oping appropriate economic policies across all sectors in-
See also
cluding government. These include money and banking • List of banks in South Korea
statistics, national income statistics, the producer price • Economy of South Korea
index, balance of payments statistics, flow of funds statis- • South Korean won
tics, input-output tables, etc. • Korean won
• Bank of Korea Museum
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From Wikipedia, the free encyclopedia Bank of Korea
Tenure Name
1st (Jun.05, 1950 ~ Dec.18, 1951) Yong Suh Koo
2nd (Dec.18, 1951 ~ Dec.12, 1956) Yoo Taik Kim
3rd (Dec.12, 1956 ~ May 21, 1960) Chin Hyung Kim
4th (Jun.01, 1960 ~ Sep.08, 1960) Eui Hwan Pai
5th (Sep.08, 1960 ~ May.30, 1961) Ye Yong Chun
6th (May.30, 1961 ~ May.26, 1962) Chang Soon Yoo
7th (May.26, 1962 ~ Jun.03, 1963) Pyong Do Min
8th (Jun.03, 1963 ~ Dec.26, 1963) Jungwhan Rhi
9th (Dec.26, 1963 ~ Dec.25, 1967) Se Ryun Kim
10th (Dec.29, 1967 ~ May.02, 1970) Jin Soo Suh
11th (May.02, 1970 ~ May.01, 1978) Sung Whan Kim
12th (May.02, 1978 ~ Jul.05, 1980) Byonghyun Shin
13th (Jul.05, 1980 ~ Jan.04, 1982) Joon Sung Kim
14th (Jan.05, 1982 ~ Oct.31, 1983) Yeung-Ki Hah
15th (Oct.31, 1983 ~ Jan.07, 1986) Chang Nak Choi
16th (Jan.13, 1986 ~ Mar.26, 1988) Sung Sang Park
17th (Mar.26, 1988 ~ Mar.25, 1992) Kun Kim
18th (Mar.26, 1992 ~ Mar.14, 1993) Soon Cho
19th (Mar.15, 1993 ~ Aug.23, 1995) Myung Ho Kim
20th (Aug.24, 1995 ~ Mar.05, 1998) Kyung Shik Lee
21st (Mar.06, 1998 ~ Mar.31, 2002) Chol-Hwan Chon
22nd (Apr.01, 2002 ~ Mar.31, 2006) Seung Park
23rd (Apr.01, 2006 ~ Mar.31, 2010) Seongtae Lee
24th (Apr.01, 2010 ~ Present) Choongsoo Kim
• Korea Financial Investment Association
External links
• The Bank of Korea official site
Retrieved from "http://en.wikipedia.org/w/index.php?title=Bank_of_Korea&oldid=465788619"
Categories:
• Banks of South Korea
• Central banks
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