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Dear fellow members of the Bank of Korea family, Given these conditions, there are numerous issues that the Korean economy needs to address.

Among them, I would like to talk briefly now about the tasks that the Bank of Korea needs to focus on as we move into the second half of this year.

There are also concerns about domestic demand turning sluggish as the sentiments of economic agents contract and consumption slows due to the effects of the MERS (Middle East Respiratory Syndrome) outbreak.

Taking into full account the possibility of structural changes in the inflation environment since the global financial crisis, we will need to strive to find the optimal solutions for the target level, the period of application, and the target indicators.

We will also need to pay particular attention to financial stability.

I think that this large-scale monetary policy easing has underpinned the recovery of economic activities.

In the latter half of this year the Korean economy is expected to sustain its trend of improvement, thanks to the economic recoveries in major advanced economies including the US and to the effects of our expansionary macroeconomic policies.

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