Shin Hyun-sung, the Bank of Korea’s governor nominee, has substantially reduced his foreign currency holdings before his confirmation hearing and stated his intention to continue this process.
In written responses submitted to the National Assembly on Tuesday, Shin addressed the disposal of foreign currency assets, sayiing that he’s already liquidated a significant portion of his foreign currency-denominated financial assets and plan to further decrease his foreign currency holdings. Reports indicate he has sold approximately 18.9 billion KRW (about 12.75 million USD) in British government bonds and exchange-traded funds (ETFs).
Shin explained that he had purchased British government bonds to maintain a certain level of safe assets for portfolio management purposes and has since sold them.
Regarding Korean stock ETFs, which he reportedly acquired just before his nomination, Shin clarified that he’s been purchasing these as the Korean stock market has outperformed others, and this is unrelated to the timing of his nomination.
On his reasons for holding foreign currency assets, Shin stated that the purpose of maintaining foreign currency-denominated financial assets includes managing earned income.
His overseas real estate holdings include an apartment in Illinois, co-owned with his wife and eldest daughter. His daughter bought the property in April 2018 for 380,000 USD while pursuing her Master of Business Administration (MBA) at Northwestern University. The Cook County tax assessment values the property at 323,640 USD, and Shin plans to sell it for 514,000 USD. Although listed for sale on April 8, no sale agreement has been reached yet.
Addressing potential conflicts of interest, Shin acknowledged that he fully understands the concerns about holding foreign currency assets, adding that he’s already sold a substantial portion of his foreign currency-denominated financial assets and plan to further reduce his foreign currency holdings after the confirmation hearing.
Responding to concerns about policy judgment impartiality, Shin emphasized that he views this as his final opportunity to serve the economy, and stressed that there must never be any conflicts of interest; all policy decisions should be based on the nation’s overall welfare.
Regarding asset disposal upon taking office, Shin reiterated that he’s already sold a significant portion of his foreign currency-denominated financial assets and plan to gradually reduce his foreign currency holdings, adding that he also intends to divest his domestic stocks.
