Bank of Korea
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| Bank of Korea 한국은행 (Korean) |
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| Headquarters | Jung-gu, Seoul, South Korea | ||||
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| Established | June 12, 1950 | ||||
| Governor | Lee Seongtae | ||||
| Central Bank of | Republic of Korea | ||||
| Currency | South Korean won | ||||
| ISO 4217 Code | KRW | ||||
| Website | www.bok.or.kr | ||||
| Preceded by | Bank of Joseon | ||||
| Bank of Korea | ||||||||
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The Bank of Korea is the national central bank of the Republic of Korea (South Korea). It was established on June 12, 1950 in Seoul.
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[edit] History
The Bank of Korea, the central bank of the Republic of Korea (South Korea) was established on June 12, 1950 under the Bank of Korea Act.
The primary purpose of the Bank, as prescribed by the Act, is the pursuit of price stability. The Bank sets a price stability target every year in consultation with the Government and draws up and publishes an operational plan including it for monetary policy.
To this end, the Bank performs the typical functions of a central bank, issuing banknotes and coins, formulating and implementing monetary and credit policy, serving as the bankers' bank and the government's bank. In addition, the Bank of Korea undertakes the operation and management of payment/settlement systems, and manages the nation's foreign exchange reserves. It also exercises certain bank supervisory functions stipulated in the Bank of Korea Act.
At the apex of the Bank of Korea's organization is the Monetary Policy Committee. The Committee's prime function is the formulation of monetary and credit policies. In addition, the Committee deliberates and resolves on major matters concerning the operations of the Bank of Korea.
The Monetary Policy Committee is composed of seven members representing various groups in the national economy :
1) the Governor, ex-officio; 2) the Deputy Governor, ex-officio; 3)one member recommended by the Minister of Finance and Economy; 4) one member recommended by the Governor of the Bank of Korea; 5) one member recommended by the Chairman of the Financial Supervisory Commission; 6) one member recommended by the Chairman of the Korea Chamber of Commerce and Industry; 7) one member recommended by the Chairman of the Korea Federation of Banks.
The members are appointed by the President for four-year terms except the Deputy Governor whose term is three years and are eligible for reappointment. All members serve on a full-time basis and no member may be discharged from office against his will. The Governor serves concurrently as the Chairman of the Committee.
The executives, consisting of the Governor, the Senior Deputy Governor, and 5 Deputy Governors, manage departments in the head office and 16 domestic branches. Additionally, the Audit Department belongs to the Monetary Policy Committee. Lee Sungtae was appointed Governor in 2006. The head office is located at Namdaemun Street, Jung-Gu, Seoul.
[edit] Distribution of currency
The Bank of Korea is the one and only legal issuer of South Korean currency. The bank distributes the banknotes and coins to the public by sending them them to commercial banks in Korea. The Bank of Korea prints the banknotes and coins at Korea Minting and Security Printing Corporation, the federal mint and document printer. The crisp notes and coins are bundled and rolled up and shipped to the Bank of Korea headquarters. The Bank of Korea sends crisp new notes to banks in Korea time to time. During the two greatest Korean holidays: Seollal and Chueseok, the Bank of Korea sends giant amount of new notes to banks to be circulated and collect worn out notes.
[edit] See also
[edit] External links
- (Korean) (English) The Bank of Korea official site
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