ING’s note makes clear that the appointment of Shin Hyun-song is not just a personnel change—it is a shift in reaction function.
- Shin’s prior emphasis on preemptive tightening and financial stability points to a more hawkish stance from the outset.
- Inflation risk is no longer purely domestic. A weaker won, driven by rising oil prices, is importing price pressure back into the economy.
- Household debt remains elevated, making the system more sensitive to prolonged liquidity.
What stands out is the constraint. Korea is not tightening into strength; it is tightening into vulnerability. Export momentum, led by semiconductors, remains strong.
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