Naming of new BOK policymaker delayed

The naming of a new member of the Bank of Korea’s monetary policy committee has been delayed, leaving the central bank without a tie-breaking vote in the upcoming rate-setting meeting in July.

Jang Byung-wha, senior deputy governor at the BOK and a member of the bank’s seven-member board, is to finish his three-year term as board member Saturday this week. The deputy governor is appointed by the president, based on the recommendation by the BOK governor. However, BOK Gov. Lee Ju-yeol has not announced his recommendation yet.

Normally, the BOK’s monetary policy committee consists of seven members. Two are positions of the ex-officio -- the governor and the senior deputy governor. The other five are appointed by the president, after being recommended by the finance minister, the BOK governor, chairman of the Financial Services Commission, chairman of the Korea Chamber of Commerce and Industry and chairman of the Korea Federation of Banks.

With the delay of the choice for a new BOK policymaker, the central bank is likely to hold its next rate-setting meeting on July 13 with just six members.

It is not the first time that a member of the monetary policy committee is missing.

There had been a two-year absence of a member after ex-board member Park Bong-heum retired in April, 2010.

Although Lee recently opened the possibility of monetary tightening amid signs of economic recovery, most analysts predict that the bank will leave the rate unchanged until at least the end of this year.

By Kim Yoon-mi (yoonmi@heraldcorp.com)