Seoul: Shin Hyun-song, the Bank of Korea (BOK) governor nominee, announced on Monday his decision to sell a significant portion of his foreign currency-denominated financial assets, with plans to further reduce his exposure. This announcement comes ahead of his confirmation hearing scheduled for Wednesday, addressing concerns over potential conflicts of interest due to his portfolio's heavy weighting towards foreign assets.

According to Yonhap News Agency, Shin has reported combined assets of 8.24 billion won (US$6.1 million) held by himself, his spouse, and his eldest son, with 55.5 percent of these assets consisting of overseas financial assets and real estate. Critics have expressed concerns that such a portfolio could pose challenges for a future head of the foreign exchange authority. Shin stated, "A conflict of interest must never occur, and all policy decisions will be made for the interests of the public as a whole."

Shin has already sold a significant portion of his foreign assets and plans to gradually reduce the remainder. This move is significant in light of the won-U.S. dollar exchange rate being a key policy focus for South Korean authorities amid heightened foreign exchange market volatility. This volatility has been driven by substantial overseas investments by local investors and massive equity sell-offs by foreign investors following marked gains and global uncertainties. Shin also addressed allegations regarding his purchase of the Franklin FTSE Korea UCITS ETF, clarifying that the investment was unrelated to the timing of his nomination.

Further controversy surrounds Shin's ownership of multiple homes. In response, Shin expressed a sense of responsibility as a public official nominee and has put two of his three properties up for sale. His assets include an apartment in Seoul's Gangnam district worth 1.51 billion won and an officetel in central Seoul valued at 1.8 billion won, both held jointly with his spouse. Additionally, his spouse owns an apartment in Illinois valued at 284.94 million won.

President Lee Jae Myung has emphasized his commitment to stabilizing the real estate market, issuing warnings against multi-home owners. He has underscored the challenges posed by real estate in the country. Shin, an Oxford-educated economist and former senior official at the Bank for International Settlements (BIS), is poised to replace outgoing BOK Governor Rhee Chang-yong, whose term concludes on April 20.