The nominee to head the central bank has pledged to appropriately adjust the pace of monetary policy accommodation to ensure that growth momentum is maintained while inflation is stabilized.

At his parliamentary confirmation hearing on Tuesday, Bank of Korea(BOK) governor nominee Rhee Chang-yong pledged to engineer a "soft landing" in household debt through the adoption of appropriate policies.

The nominee assessed that while household debt has expanded at a slower pace in recent months, it remains high enough to potentially pose a risk for stability and growth. He said tools such as interest rate signaling should be used to moderate debt expansion, while preparing for the possibility of insolvency in the hands of vulnerable borrowers.

Citing external uncertainties such as the protracted Ukraine war, the U.S. Federal Reserve’s aggressive monetary tightening and the omicron uptick in China, Rhee said upward risks for inflation and downside risks for the economy are both expanding.

The nominee said that going forward, he will work with the government to implement measures to mitigate youth unemployment, poverty among the elderly, and income gaps that could trigger prolonged low growth.

Rhee, who had previously served as a director at the International Monetary Fund's(IMF) Asia and Pacific Department, was nominated to succeed former BOK Governor Lee Ju-yeol last month.