In this context, the recent passage by the National Assembly (July 23, 2003; Finance and Economy Committee) of the draft revision of the Bank of Korea Act, whose main purposes are to heighten the independence and efficiency of monetary and credit policies and strengthen it in the exercise of its functions, takes on great significance.
Provided the bill is accepted and brought into force, it will above all affect the composition of the Monetary Policy Committee by empowering the central bank’s Deputy Governor, as is the case in advanced countries, to sit as an ex officio member, thereby heightening both the independence of the central bank and the linkages between policy decision-making and execution.