As the financial crisis from the United State of America had spread all over the world since the latter half of 2008, the credit crunch in domestic financial markets and business recession appeared in Korea. In order to overcome the situations, the Bank of Korea took measures such as reduction of base rate, lowering the rate of aggregate credit ceiling loans and increasing the amount of the loans, and broadening of eligible collateral and counterparties for open market operations. Unfortunately, however, there were some opinions from the press that the above-mentioned monetary and credit policies by the Bank of Korea were not sufficient for responding to the financial crisis. Besides, the National Assembly of the Republic of Korea suggested opinions concerning the reorganization of financial supervision systems and functions of the central bank in Korea. The first chapter of this paper deals with the purpose and scope of this study. The second chapter studies the overviews of economic administration. In the third chapter, I research the status of the Bank of Korea as a subject of economic administration. In the fourth chapter, I deal with the legal relations between the Bank of Korea and financial institutions. Lastly, I suggest some ideas which can improve effects of the monetary and credit policies by the bank in the legal aspects. For the purpose of heightening the effectiveness of the monetary and credit policies by the Bank of Korea, the bank had better make use of adequate administrative guidance, give incentives to financial institutions such as prime rates in aggregate credit ceiling loans, exercise the powers positively prescribed by the Bank of Korea Act, and push forward amendment to the Bank of Korea Act.