Rep. Kim Joo-young proposes a partial amendment to the Bank of Korea Act… strengthening the BOK’s responsibility and authority for monetary sovereignty and financial stability

[한국금융신문 강규석 기자] On the 4th, Democratic Party Rep. Kim Po Si-gap (National Assembly Planning and Finance Committee) proposed the “Bank of Korea Act Partial Amendment Bill” that the Bank of Korea proactively prepares for the threat of monetary sovereignty and financial stability.

Rep. Kim Joo-young said, “As the possibility of the emergence of private digital currencies such as stablecoins, concerns about currency sovereignty and financial stability are raised.” It is a situation that could develop into a situation.”

Rep. Kim Joo-young said, “By bypassing the central bank system, potential risk situations that harm monetary sovereignty, financial stability, and payment and settlement system safety must be prevented in advance. “We have prepared a revised bill so that we can detect factors early or try to prevent them and respond in a timely manner in case of emergencies.”

The revised bill clarified the scope of work, such as operation and management of the payment and settlement system, and imposed an obligation for research efforts to improve and develop the system. In addition, risk management standards were established and compliance with them was checked. In addition, the Bank of Korea’s responsibility has been further strengthened by reporting the results of the operation and monitoring of the payment and settlement system to the National Assembly every year.

If this bill is passed, the legal basis for the Bank of Korea to respond to the threat of monetary sovereignty and risks in the settlement system will be established. In addition, by supporting and monitoring digital innovation in the financial sector, it is evaluated that Korea’s payment and settlement system is more stable and the foundation for continuous development is laid.

Regarding this, a high-ranking BOK official said, “It is desirable to establish a legal basis for the Bank of Korea Act, not the Electronic Financial Transaction Act, for institutionalization of payment settlement.” “It doesn’t fit the principle and is unprecedented in the world.”

“Considering that the convenience of payment has improved due to the expansion of digital payment methods and the growth of fintech and big tech, the possibility of instability of the payment system has also increased. This is an urgent matter that cannot be postponed any longer.” He added, “I look forward to a full-fledged discussion at the level of the National Assembly’s Planning and Finance Committee as soon as possible, and if there is a request from the National Assembly, the BOK will actively participate in the discussion and express opinions.”

Reporter Kang Gyu-seok [email protected]