BOK nominee’s foreign-heavy assets draw conflict concerns

Bank of Korea governor nominee Shin Hyun-song holds more than half of his assets overseas, with nearly all of his financial assets denominated in foreign currencies — a structure that is drawing scrutiny over possible conflicts of interest related to exchange rate policy, data showed Sunday.

According to a disclosure submitted to the National Assembly, Shin and his immediate family hold total assets of 8.24 billion won ($6.1 million), of which 4.59 billion won, or 55.5 percent, is held overseas.

The concentration is even more pronounced when it comes to financial assets. Of the 4.65 billion won in financial holdings, 98.4 percent are foreign currency-denominated, leaving only a small portion in won-based assets.

This composition reflects Shin’s long career abroad. Born in Daegu in 1959, he was educated mainly in the United Kingdom, earning degrees in economics from the University of Oxford, where he later taught. He went on to teach at the London School of Economics and Princeton University, and served as an adviser to the Bank of England and a senior resident scholar at the International Monetary Fund. In 2010, he briefly returned to Korea as a senior presidential adviser on the international economy.

Still, the scale of foreign currency exposure is raising questions ahead of his confirmation hearing, as he is set to lead the central bank at a time of heightened currency volatility.

Because the value of foreign assets rises in won terms when the currency weakens, critics say there could be a perceived conflict between his personal financial position and policy responsibilities aimed at stabilizing the exchange rate.

Shin’s domestic financial assets are limited to about 331 million won in deposits and small holdings in local equities, including Samsung Electronics and LG Energy Solution.

Among his overseas holdings, deposits account for the largest share at 2.03 billion won, followed by about 320 million won in UK government bonds. His spouse holds 1.85 billion won in foreign currency deposits, while his son — a UK national — owns 82 million won in deposits and 28 million won in stocks.

By comparison, current Bank of Korea Gov. Rhee Chang-yong holds about 5.5 percent of his total assets in foreign currencies.

Separately, Shin’s real estate holdings are also expected to draw attention. He owns multiple properties in Korea and the United States, including an apartment in Seoul’s Gangnam district valued at about 1.5 billion won and an officetel in central Seoul worth 1.8 billion won, jointly owned with his spouse.