In their first one-on-one meeting since 2018, Finance Minister Hong Nam-ki and Bank of Korea(BOK) Governor Lee Ju-yeol on Friday agreed that fiscal and monetary policies need to complement each other according to economic conditions. 

Hong and Lee assessed that while exports and investment are expected to carry the recovery momentum, the service sector and employment remain stagnant.

They acknowledged that there are potential risks involving uneven economic recovery, the widening income gap and financial imbalance. However, they agreed on the importance of achieving a balance in fiscal and monetary policies and the division of roles.

The two decided to maintain expansionary policy to restore the nation's growth potential and consumption power, while adjusting the easing of monetary policies to reduce the fiscal imbalance under a prolonged low-rate policy.

The remarks come amid controversy that the government and central bank are not in tune after the BOK hinted at a rate hike within the year, despite Seoul's continued expansionary measures.