I am pleased to welcome you to the BOK International Conference 2022, which will be held online over two days on June 2 and 3, under the theme of “The Changing Role of Central Banks: What Can We Do and What Should We Do?”

Since the outbreak of the COVID-19 pandemic, governments and central banks around the world have worked to overcome the crisis by implementing aggressive fiscal support measures and accommodative monetary policies. These policy measures are seen to have eased the shock from the crisis and contributed to financial system stability and real economic recovery.

The continued emergence of new variants, however, has delayed economic recovery, and the Russia-Ukraine war has heightened geopolitical risks. With the elevated government debt and liquidity that rose during the pandemic response now acting as underlying inflationary pressures, geopolitical risks have aggravated global supply chain disruptions, raising concerns about a return to high inflation. Under these circumstances, central banks are tasked with normalizing monetary policy.

Meanwhile, bringing about fundamental changes to the way people live and work, the pandemic has been driving a structural transition in terms of labor market structure, economic inequality and the digitalization of the economy. As working from home has become commonplace since the pandemic, the labor market is undergoing structural changes. Furthermore, booming non-face-to-face industries are accelerating the digitalization of the economy. All of this has led to sectoral growth imbalances and worsened economic inequality.

To cope with these structural changes in the economy, central banks need to play a greater part. When we recall that historically the role of the central bank has shifted following major crises such as the Great Depression and the Global Financial Crisis, we see that it is now time to discuss and define the new roles that central banks should take on to respond to recent changes.

In this regard, this year’s conference will be an excellent opportunity for us to determine what central banks can do and should do in the aftermath of the pandemic crisis, and explore how to take the next step in the evolution of the central bank.

I hope that the conference will serve as a valuable forum for sharing our wisdom to prepare for the future, and look forward to your interest and participation.

• 
• Chang Yong Rhee
• Governor
• Bank of Korea