Seoul: Outgoing Bank of Korea (BOK) Gov. Rhee Chang-yong said Monday achieving economic stability and growth through monetary and fiscal policy alone has become increasingly difficult, calling for a broader role for the central bank in addressing long-term structural challenges. Rhee made the remarks during his farewell ceremony in Seoul, as he completed his four-year term. Governor-designate Shin Hyun-song is set to begin his term Tuesday if his nomination is approved by the parliament later in the day.

According to Yonhap News Agency, Rhee highlighted the diminishing impact of traditional monetary and fiscal policies in achieving economic stability amidst ongoing structural changes. Despite this, public expectations for policymakers remain high, creating a gap due to past successes. Rhee emphasized the challenges, noting that while recent economic conditions appear stable due to a semiconductor boom, they also underscore issues like excessive reliance on specific industries and increased polarization.

Rhee urged the Bank of Korea to extend its focus beyond traditional policy boundaries to address structural issues such as education, housing, balanced regional development, youth employment, and elderly poverty. He envisions the BOK becoming the nation's leading think tank in these areas.

Reflecting on his tenure, Rhee underscored the BOK's significant achievements, including reducing inflation to the 2 percent range, introducing Korea-style forward guidance, chairing the Bank for International Settlements Committee on the Global Financial System, and publishing numerous reports on structural reform.

Rhee concluded by stressing the importance of competence in maintaining public trust in the central bank, encouraging future leaders to set higher goals and achieve greater progress. After stepping down, Rhee plans to engage in activities that leverage his expertise and mentor the next generation.