Composition of the Monetary Policy Board
The Monetary Policy Board is a policy-making body that deliberates and decides on major matters concerning the monetary policy of the Bank of Korea. The Board is composed of seven members including the Governor and the Senior Deputy Governor of the Bank.
The Governor, who serves as the Chairman of the Board concurrently, is appointed by the President following deliberation by the State council. The Senior Deputy Governor is appointed by the President on the recommendation of the Governor. Five other members are appointed by the President on the recommendations by the Minister of Economy and Finance, the Governor of the Bank of Korea, the Chairman of the Financial Services Commission, the Chairman of the Korea Chamber of Commerce and Industry, and the Chairman of the Korea Federation of Banks, respectively.
The term of the Governor is four years and that of the Senior Deputy Governor is three years. They may be reappointed for a single consecutive term. The terms of the other members are four years*, and he or she may be reappointed for consecutive terms.
*However, a three-year term will be applied to the two members appointed in April 2020 recommended by the Governor of the Bank of Korea and the Chairman of the Financial Services Commission.
Operations of the Monetary Policy Board
The Bank of Korea Governor presides at the Board meetings as the Chairman. Board meetings shall be called by the Chairman when he or she considers them necessary to call meetings or when at least two members so request. The regular meetings convene on the Thursdays of the second and fourth weeks of each month. The deliberations and decisions of agenda submitted to Monetary Policy Board meeting shall be adopted by the attendance of at least five Members and a simple majority of those present. A formal record of resolutions should be prepared when the Board makes a decision. The board must produce the minutes of each meeting and publish the parts relevant to monetary policy.
Apart from the regular Board meetings, other meetings are also held including meetings for discussion of submitted agenda and council meetings for exchanges of opinions on staff briefings on current economic and financial developments. Meanwhile, a separated board convenes to closely examine important matters such as the Monetary Policy Report, the Annual Report and budget plans to be reported to the National Assembly.