'BIS Man' Hyun-Song Shin Returns as a Board Member...to Sit Down with Fed and ECB Chiefs

[Financial News] Bank of Korea Governor Hyun-Song Shin has returned to the Bank for International Settlements (BIS) as a board member, after spending 12 years there. He became the third BOK governor to serve on the board, following former governors Lee Ju-yeol and Rhee Chang-yong.
According to the BOK on the 12th, Shin was elected to the BIS Board of Directors at a meeting in Basel, Switzerland, on the 11th local time. He will begin a three-year official term starting that day.
The first BOK governor to be appointed to the BIS board was former Governor Lee Ju-yeol. He was reappointed after completing a three-year term that began in 2019. However, when his term as BOK governor ended, he automatically stepped down from the board. His successor, former Governor Rhee Chang-yong, was then elected as a new board member in 2022.
With this election, Shin has become the third BOK governor to gain a voice on the BIS Board.
Founded in 1930 to promote discussions on international monetary affairs and financial stability, the BIS is an international organization with more than 60 major central banks as members. Among its bodies, the board serves as the de facto top decision-making body, setting the organization’s operations, budget and policy direction, while overseeing the executive office.
A BOK official explained, "Board members serve ex officio on the Economic Advisory Committee, where they can propose agenda items for discussions at the BIS World Economic Meeting and its subcommittees, and advise on the selection of chairs."
The post is seen as one worth holding, not only because it gives him the practical authority to take part in major decisions, but also because it provides opportunities to hear directly from central bank governors, including those of the Federal Reserve System (Fed) and the European Central Bank (ECB), and exchange views with them.
The board is made up of 18 members in three categories. It includes six permanent governors from the founding member countries — Belgium, France, Germany, Italy, the United Kingdom and the United States — along with 11 elected members and one appointed member, the governor of the Federal Reserve Bank of New York. South Korea falls under the elected category, and a candidate is appointed if two-thirds of the board members approve. In practice, however, decisions are reportedly made by consensus.
Shin’s appointment had been widely expected. Since joining the BIS in May 2014, he spent about 12 years there, serving in key posts such as economic adviser and head of the research department before working as head of the Monetary and Economic Research Department until March this year, just before being nominated as BOK governor. Having already earned recognition for his capabilities and achievements within the BIS, there was little reason for a difficult vetting process.
Shin had earlier attended the BIS governors’ meeting in Basel, Switzerland, on the 10th and 11th as the governor of a member central bank. At the Global Economy Meeting, the Meeting of Governors from Major Emerging Market Economies and the All Governors' Meeting, he discussed the global economy and financial market conditions with other member central bank governors.

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