Bank of Korea
|Bank of Korea|
The Bank of Korea was established in 1950 under the Bank of Korea Act. It has served as Korea's central bank, with a commitment to pursuing monetary stability and development of the Korean economy. The Bank sets a price stability target every year in consultation with the government and draws up and publishes an operational plan including one for monetary policy.
The Bank was originally established with a capital of 1.5 billion won, all of which was subscribed by the government, but the amendment of the Bank of Korea Act in 1962 made the Bank a special juridical person having no capital.
To this end, the Bank performs the typical functions of a central bank, issuing banknotes and coins, formulating and implementing monetary and credit policy, serving as the bankers' bank and the government's bank. In addition, the Bank of Korea undertakes the operation and management of payment/settlement systems, and manages the nation's foreign exchange reserves. It also exercises certain bank supervisory functions stipulated in the Bank of Korea Act.
On October 8, the Bank of Korea announced it's key policy interest rate would stay unchanged at a record low 2 percent for the eighth month in a row. Many economists see a rate increase by 2010 to fight inflation and improve domestic economic growth.