‘Workaholic’ world-class scholar to take the helm… Bank of Korea staff split between anticipation and concern [Shim Sung-mi’s BOK Watch]

As the appointment of Hyun Song Shin, the nominee for the next governor of the Bank of Korea (BOK), draws near, anticipation and concern are intersecting inside the central bank. While many say “it would be hard to find a more suitable person,” citing his standing as a top global scholar who spans both monetary policy and financial stability, there are also signs of staff unease over his demanding work style.

The first internal reaction at the BOK has largely been that the right pick was made. Shin is an international finance and macroeconomics expert who spent more than a decade at the Bank for International Settlements (BIS)—often called the “central bank for central banks”—serving as economic adviser and head of research, among other roles including head of the monetary policy department. He is also credited with pinpointing, early on, the link between macroeconomics and finance—then still unfamiliar to many—after publishing research during the global financial crisis analyzing collateralized borrowing and asset securitization at U.S. investment banks. This is why he is seen as someone who combines theory with practical expertise.

In particular, many within the BOK say they have high expectations for Shin’s global network, strengthened through stints at major international financial institutions. That is because central bank governors from around the world—including Federal Reserve Chair Jerome Powell—visit the BIS several times a year to attend governors’ meetings.

Shin’s ties to former U.S. Treasury Secretary Timothy Geithner date back to 2007, when Shin served as an adviser to the Federal Reserve Bank of New York; Geithner was then president of the New York Fed. Shin also worked at the New York Fed with Tobias Adrian, director of the IMF’s Monetary and Capital Markets Department, and the two have co-authored papers. With global economic volatility rising amid developments such as the Middle East situation and closer coordination among countries increasingly required, the presidential office is said to have viewed Shin’s solid global network as a key strength.

Still, a tense mood is also evident. That reflects Shin’s reputation as a “workaholic.” A BOK official said, “Staff are on edge, especially because there are rumors that his standards for requested reports are quite strict.” Some employees say the Research Department, which handles real-economy data underpinning monetary policy, could face the toughest workload. Others say work intensity at the Financial Stability Department could also rise, given that financial stability is Shin’s specialty.

There is also speculation that he will bring a leadership style different from that of former Governor Rhee Chang-yong. Rhee promoted the idea of a “rank-free BOK” and a “noisy BOK,” encouraging active communication among staff and even debate on topics unrelated to the BOK’s core mandate, such as structural reform. By contrast, Shin may prioritize demanding top-tier intellectual output above all else.

Above all, the biggest reason BOK employees are feeling tense is that “there is very little information available” about him. Because Shin has spent many years overseas, the number of people in Korea with direct connections to him is limited. Insiders say staff are trying to infer his work style from the papers he has published. A BOK official said, “Governor Rhee also came from the International Monetary Fund (IMF), but back then staff joked that ‘about half of BOK employees are Rhee’s students,’ so there was plenty of information about his work and teaching style.” The official added, “In contrast, there is almost no information about Shin, which is making people even more nervous.”

Reporter Shim Sung-mi smshim@hankyung.com