Bank of Korea (BØG)

den Bank of Korea (BØG) is the centralbank af South Korea and issuer of South Korean won. It was established on June 12, 1950 på Seoul, South Korea.

The Bank’s primary purpose is price stability. For that, Banken targets inflation. The 2010–12 target is consumer price inflation of 3.0 ± 1%.

Historie

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

Primary Purpose

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 less than before. derfor, it is naturally the task of a central bank to safeguard the value of the money by keeping inflation low.

Prices are influenced by various factors such as corporate investment, household consumption and international prices of raw materials. Meanwhile, among the various policy instruments to bring about price stability, the monetary policy of a central bank, which adjusts the quantity of money in circulation, is the most effective.

For these reasons, the responsibility for price stability is given to central banks in most countries. The Bank sets and announces an inflation target for a certain period and strives to meet this target. The 2010–12 target is consumer price inflation of 3.0± 1%

Kontakt information

Adresse: Jung-gu, Seoul, South Korea

Website: HTTP://eng.bok.or.kr

Kilde: en.wikipedia.org