## The Transformative Central Banker

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### Evolving role of the central bank
- Chang Yong Rhee became Bank of Korea governor in April 2022 amid a global inflation surge and Russia’s war on Ukraine.
- He argues the Bank of Korea “must be a leading think tank for Korea as a whole, not just a central bank.”
- Structural factors now play a larger role in policy formulation:
  - Population aging and diminished globalization are cited as key structural shifts.
  - The rapid evolution of the digital economy and changing global supply chains are included among the drivers of change.
- To make “proper monetary policy,” the Bank must distinguish cyclical from structural forces and study a broader range of subjects.

### Institutional changes and public engagement
- The Bank of Korea has expanded communications and public engagement to be “more vibrant, less ‘temple-like.’”
- New outreach measures include:
  - expanded focus on videos and visualizations,
  - creation of a new studio,
  - staff media training,
  - opening a gift shop.
- Rhee emphasizes research that is both high-quality and accessible: “research should be easy for people to read.”

### Independence, cooperation, and mandates
- Rhee: “Central bank independence is very important, especially in achieving price stability.”
- He notes the practical need for cooperation with government on non-monetary functions:
  - financial market stability,
  - acting as lender of last resort,
  - involvement in resolving bankrupt financial institutions.
- Independence is essential for price stability and other operations, but “the central bank must cooperate with the government.”

### Communicating structural realities and expectations
- Public perceptions of appropriate growth remain anchored to Korea’s high-growth past:
  - Many people expect at least 3 percent, even over 4 percent, as a “proper growth rate.”
- Rhee stresses current constraints on potential growth: “because of aging and other changes, our potential GDP growth rate is now about 2 percent or below.”
- He highlights the difficulty of changing perceptions and behavior and the consequent importance of clear communication.

### Professional trajectory and perspective
- Rhee’s background: Seoul National University undergraduate, doctorate from Harvard University, academic posts in the United States and Korea, and prior roles as ADB chief economist and director of the IMF Asia Pacific Department.
- His international experience shaped a global perspective, an appreciation for financial stability, and an extensive international network that informs cooperation with multilateral institutions and other countries.
- Transitioning from policy adviser to decision-maker, Rhee notes the increased weight of responsibility in making final calls on monetary policy.

*Interview edited for length and clarity; Visit www.imf.org/podcasts to hear the full interview.*

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_Source: https://www.imf.org/-/media/files/publications/fandd/article/2026/03/trenches.pdf_