Rival parties clash over monetary policy, hiring scandal during Monday's audit
국정감사 후반전...'고용 세습'•금리 정책 쟁점
We're now half-way through the National Assembly's audit.
Issues up for debate today: the country's monetary policy and a hiring scandal involving a subway operator.
Kim Min-ji has the latest from parliament.
A key issue at the audit of the Bank of Korea on Monday was when and whether its key rate will be raised.
The central bank governor said that could be an option in November.
"If the real economy fares well,... then we will consider a rate hike. There are many risk factors that we have to assess, and the country's growth and inflation must not fall out of line."
There've been growing calls for a hike... given the country's high household debt... and the possibility of foreign capital outflow.
But concerns linger as the country faces weak job growth and trade uncertainties.
The ruling party said that the BOK's decision is extra important at a time like this.
"It's a double-edged sword. In this situation, it would make it extra important for the central bank to consider all these factors."
"The Bank of Korea first and foremost focuses on growth and inflation. But we also have to consider risks regarding financial stability."
Another issue was whether the BOK is free from government pressure -- which the governor said... it is.
The ruling party alleged that the previous conservative government pushed the central bank into multiple rate cuts... which triggered housing speculation and a rise in household debt.
The opposition argued that the current government has done the same thing,... referring to recent remarks by top government officials on the need of a hike.
"What do you have to say about the neutrality and independence of the central bank when it comes to monetary policy?"
"The board members that make the decision do not consider external remarks,... and we do our best to make the best decision based on what the law requires us to do."
At the Seoul Metropolitan Government audit -- the hot potato was the hiring scandal involving the operator of the Seoul subway.
The opposition said that by giving job favors to the relatives of their workers, it's deprived young people of jobs.
The ruling party criticized the opposition for politicizing the issue based on groundless allegations.
During the inspection of the state-run Korea Development Bank,... the issue was GM Korea's decision to spin off its research arm and whether this was part of plans to exit the country.
GM Korea has already shut down one of its four factories because of heavy losses and KDB -- a shareholder of the U.S. carmaker -- is currently providing a financial lifeline.
The state-run bank said it doesn't see it that way,... and GM Korea also said the spinoff is part of broader restructuring plans.
Kim Min-ji, Arirang News.
We're now half-way through the National Assembly's audit.
Issues up for debate today: the country's monetary policy and a hiring scandal involving a subway operator.
Kim Min-ji has the latest from parliament.
A key issue at the audit of the Bank of Korea on Monday was when and whether its key rate will be raised.
The central bank governor said that could be an option in November.
"If the real economy fares well,... then we will consider a rate hike. There are many risk factors that we have to assess, and the country's growth and inflation must not fall out of line."
There've been growing calls for a hike... given the country's high household debt... and the possibility of foreign capital outflow.
But concerns linger as the country faces weak job growth and trade uncertainties.
The ruling party said that the BOK's decision is extra important at a time like this.
"It's a double-edged sword. In this situation, it would make it extra important for the central bank to consider all these factors."
"The Bank of Korea first and foremost focuses on growth and inflation. But we also have to consider risks regarding financial stability."
Another issue was whether the BOK is free from government pressure -- which the governor said... it is.
The ruling party alleged that the previous conservative government pushed the central bank into multiple rate cuts... which triggered housing speculation and a rise in household debt.
The opposition argued that the current government has done the same thing,... referring to recent remarks by top government officials on the need of a hike.
"What do you have to say about the neutrality and independence of the central bank when it comes to monetary policy?"
"The board members that make the decision do not consider external remarks,... and we do our best to make the best decision based on what the law requires us to do."
At the Seoul Metropolitan Government audit -- the hot potato was the hiring scandal involving the operator of the Seoul subway.
The opposition said that by giving job favors to the relatives of their workers, it's deprived young people of jobs.
The ruling party criticized the opposition for politicizing the issue based on groundless allegations.
During the inspection of the state-run Korea Development Bank,... the issue was GM Korea's decision to spin off its research arm and whether this was part of plans to exit the country.
GM Korea has already shut down one of its four factories because of heavy losses and KDB -- a shareholder of the U.S. carmaker -- is currently providing a financial lifeline.
The state-run bank said it doesn't see it that way,... and GM Korea also said the spinoff is part of broader restructuring plans.
Kim Min-ji, Arirang News.