Shin Hyun-song, the nominee for Bank of Korea governor, announced on Monday that he has already divested a substantial portion of his foreign currency-denominated financial assets and intends to further minimize his holdings.
These statements were made in written responses submitted to the National Assembly in preparation for his confirmation hearing on Wednesday. The remarks come amidst criticism that his investment portfolio, which heavily favored overseas assets, could present a significant conflict of interest for the future head of South Korea’s primary foreign exchange authority.
Previously, the BOK governor nominee reported a total of 8.24 billion won (approximately $6.1 million) in combined assets, held by himself, his spouse, and their eldest son. Notably, 55.5 percent of this declared wealth comprised overseas financial assets and international real estate.
“I fully understand the concerns that have been raised,” stated Shin. “A conflict of interest must never arise, and all policy decisions will be made strictly in the broader public interest.”
Shin reaffirmed his commitment, stating that he has already divested a significant portion of his foreign assets and plans to progressively reduce his remaining overseas holdings.
The won-US dollar exchange rate remains a critical policy priority for South Korean authorities, especially amidst heightened foreign exchange market volatility. This instability has been fueled by substantial overseas investments from local investors, significant equity sell-offs by foreign investors after considerable gains, and overarching global economic uncertainties.
Addressing allegations concerning his purchase of the Franklin FTSE Korea UCITS ETF, a London-listed Korean equity exchange-traded fund, shortly before his nomination, Shin clarified that this investment was entirely unrelated to the timing of his appointment.
“The investment was a component of routine portfolio management, at a time when the Korean stock market demonstrated strong performance compared to its global counterparts,” he explained.
Transitioning to the controversy surrounding his ownership of multiple homes, Shin expressed “a profound sense of responsibility as a public official nominee.” He confirmed that two of his three properties have now been listed for sale.
Documents submitted for the confirmation hearing reveal that Shin owns an apartment in Seoul’s affluent Gangnam district, valued at 1.51 billion won, under his sole name. He also jointly holds an officetel in central Seoul with his spouse, appraised at 1.8 billion won. Furthermore, his spouse independently owns an apartment in Illinois, United States, valued at 284.94 million won.
This aligns with President Lee Jae Myung’s strong stance, as he has repeatedly emphasized his commitment to stabilizing the real estate market. The President has issued stern warnings against multi-home owners, famously stating that “the root of all problems in this country lies in real estate.”
