Seoul:<Text>

New Bank of Korea (BOK) Governor Shin Hyun-song and Finance Minister Koo Yun-cheol have agreed to strengthen policy coordination in response to increased market volatility due to the ongoing Middle East crisis, the central bank announced. This decision was made during their first meeting since Shin assumed office earlier this week.

According to Yonhap News Agency, both officials highlighted the necessity of coordinated fiscal and monetary policies amidst the current economic challenges. Governor Shin noted the importance of aligning these policies as the situation in the Middle East evolves and as the economy faces the dual pressures of growth and inflation. He emphasized the value of direct communication and expressed his intention to maintain regular contact with the finance ministry to discuss economic assessments and potential reforms.

Finance Minister Koo underscored the critical role of communication in the effective management of fiscal an d monetary policies. He pointed out that financial market volatility is particularly pronounced in the foreign exchange market, necessitating closer cooperation between the BOK and the finance ministry. Koo also indicated that structural reforms are essential for enhancing potential growth and acknowledged the BOK's research capabilities as a valuable resource for informed decision-making.