BOK-MOFE Rivalry Reappears

The long-time rivalry between the Bank of Korea(BOK) and the Ministry of Finance and Economy(MOFE) is now resurfacing. The old grudge the two bear against one another in terms of fiscal and business policies is still waiting to be resolved.
The two sides have been battling over supporting the Korea Exchange Bank, BOK's budget, interest rates and currency policies as well as every sector within their sphere of operations.
The feud started with the independence of the BOK in formulating currency and credit policies. The two sides fought in 1988, 1995 and 1997 on the issue of the BOK's liberation and divergent policies from the Ministry. 1997 showed how debilitating the feud was for the nation. Although there were ominous storm clouds forming in foreign currency markets, the two sides fought an emotionally-charged struggle which in the end neglected to deal with the economic danger that eventually ushered in the IMF era, a disgrace the 11th largest economy is still trying to escape from.
MOFE wants to have the same grasp on the BOK as it held in the old days and its temper tantrums are getting worse as time goes by.
Last July, MOFE felt that low interest rates along with the issuance of more currency could avert economic stagnation. The BOK bitterly resisted and insisted it alone should determine any countermeasures.
Last September, the government decided to inject more money into the ailing Korea Exchange Bank(KEB) in order to keep it afloat. The BOK withheld the funds asserting that it was inappropriate and illegal to supply further assistance. The bank is still struggling while the two keep contending with each other.