The Bank of Korea (BOK) is the central bank of the Republic of Korea, established in 1950 with the primary mission of maintaining price stability and facilitating balanced, sustainable economic growth. Its main objectives are to promote economic efficiency, encourage job creation and social cohesion, and foster economic stability.
As a leading economic policymaker and financial regulator, the BOK ensures a safe and sound banking system and provides financial services and products to individuals, businesses, and governments. It serves as a bridge between the private and public sectors, providing a clearer framework for engaging both in economic exchange. The BOK’s main instruments include setting the benchmark interest rate, managing Korea’s foreign exchange reserves, measuring, controlling and managing national monetary aggregates, and providing domestic and foreign payment services.
The BOK’s main responsibilities include setting Korea’s monetary policy, maintaining price stability, financial stability and market liquidity. Through multiple channels, including central banks communication policies, the BOK also implements effective measures to protect the interests of consumers and promote efficient management of the financial system.
The BOK is headed by the governor, and has many other staff members in various departments, including economic information, financial planning, market and foreign exchange operations, international reserves and foreign exchange operations, and various other functions. In addition to its headquarters in Seoul, the BOK has branch offices in major cities throughout Korea.
The BOK’s involvement in the economy dates back to the signing of the Bank of Korea Act in 1950. The central bank’s primary purpose is to ensure a sound banking system and promote Korea’s economic growth by expanding and strengthening credit and encouraging balance in Korea’s balance of payments. The Bank of Korea operates in line with the basic principles of global monetary policy, and adheres to international standards and practices in the management of its foreign exchange reserves.
The BOK’s monetary policy is guided by the government’s economic objectives, with the ultimate goal of achieving a stable and sustainable growth path. To counter inflationary pressures, the BOK monitors and controls liquidity, adjusts benchmark interest rates, intervenes in foreign exchange markets, and implements policies to discourage excessive speculation. The BOK’s economic policy-making framework relies heavily on the use of market-based tools, such as monetary instruments and communication, and macroprudential policy.
The main objectives of the BOK are to protect the integrity and stability of Korea’s financial system, promote financial inclusion, and strengthen economic and financial cooperation with international organizations. In its pursuit of these objectives, the BOK works closely with other public and private institutions to protect the interests of its stakeholders, maintain a sound banking system and foster sustainable economic development.
