The Bank of Korea
(BOK) is the central bank
of South Korea
and issuer of South Korean won
. It was established on June 12, 1950 at Seoul
, South Korea
The Bank's primary purpose is price stability. For that, the Bank targets inflation
. The 2010–12 target is consumer price
inflation of 3.0 ± 1%.
The Bank of Korea was established on June 12, 1950 under the Bank of Korea Act.
Following liberation on August 15, 1945, the Korean economy was plunged into turmoil. Tackling the severe inflation and financial disorder brought about by an acute shortage of resources and the division of the country along the 38th parallel was the immediate priority.
In this situation, discussions raged across the country on establishing a central bank for the Republic of Korea and Dr. A. I. Bloomfield, dispatched from the Federal Reserve Bank of New York, drafted the Bank of Korea Act.
Based on this draft, the Bank of Korea Act was passed in May 1950 and the Bank launched its operations as a central bank on June 12, 1950. It was given a wide range of functions in relation to monetary & financial policy, bank supervision, and foreign exchange policy.
The primary purpose of the Bank is to pursue price stability
Under the Bank of Korea Act (Article 1), the primary purpose of the Bank is pursuing price stability so as to contribute to the sound development of the national economy.
The purchasing power of money depends on prices. When prices rise, the same amount of money buys... Read More