Bank of Korea News

South Korea's Economic Challenge: Rising Resource Allocation Inefficiency Threatens Innovation

The Bank of Korea reports a tripling in resource allocation inefficiency since the 1990s, with the service sector hit hardest. Solutions include better funding access for innovativ...

South Korean Forex Market Soars: Record High Transactions Amid Won Appreciation Hopes

South Korea's forex market hits a record high with $82.16 billion daily transactions in Q2, driven by won appreciation hopes, extended trading hours, and increased foreign investme...

South Korea's Economy Bounces Back: Q2 GDP Grows 0.6% Fueled by Strong Domestic and Export Performance

South Korea's GDP grew by 0.6% in Q2 2025, rebounding from a negative growth in Q1, driven by strong domestic demand and exports, despite declines in construction and facilities in...

South Korea's Economy Surprises with 0.6% Growth in Q2 2025, Outperforming Expectations

South Korea's economy showed remarkable resilience in Q2 2025, with a 0.6% quarter-on-quarter GDP growth, outperforming expectations. The recovery was supported by a 1.3% rise in G...

Korea Sees Third Consecutive Month Rise in Foreign Currency Deposits Amid Export Boom

Korea's resident foreign currency deposits have increased for the third consecutive month, reaching $106.44 billion, driven by strong exports and dividends from overseas subsidiari...

May's Money Supply Soars by 44 Trillion Won Amid Stock Market Rally

The stock market's recent performance has led to a 44 trillion won increase in May's money supply, with M2 showing a 6.5% year-on-year growth. Investment funds and savings deposits...

South Korea's Housing Market Heats Up: BOK Governor Warns of Faster Price Rises Than Last Year

Bank of Korea Governor Rhee Chang-yong warns of faster housing price rises in South Korea than last year, calling for stronger macroprudential policies and expanded central bank au...

BOK Governor Warns: Unregulated Won Stablecoins Could Trigger Massive Capital Outflow

Bank of Korea Governor Rhee Chang-yong warns of the risks associated with unregulated won stablecoins, including potential capital outflow and challenges in money supply control, w...

South Korea's Q1 Stablecoin Trading Skyrockets to 57 Trillion Won Amid Global Crypto Surge

South Korea's stablecoin trading volume reached 57 trillion won in Q1, with USDT leading the market. The Bank of Korea emphasizes the need for regulated issuance of won-based stabl...

South Korea's Lee Administration Borrows $13.27 Billion From BOK in First Month, Signaling Fiscal Challenges

South Korea's Lee Jae-myung administration borrowed 18 trillion won from the Bank of Korea in its first month, highlighting fiscal challenges and sparking political criticism over ...

Oil Price Surge Pushes Inflation Back to 2%: What This Means for the Economy

The Bank of Korea anticipates a slowdown in July's inflation rate after June's surge to 2.2%, driven by oil prices and agricultural costs, with future trends dependent on internati...

Global Oil Prices Plummet: A Three-Month Streak of Declining Import Prices Shakes Markets

The international oil price has fallen by over 6% in a month, leading to a third consecutive month of declining import prices. Key sectors affected include raw materials and interm...

South Korea's Foreign Reserves Hit a Five-Year Low in April Amid Rising Exchange Volatility

South Korea's foreign exchange reserves fell to a five-year low in April, dropping by nearly $5 billion due to increased exchange rate volatility and swap transactions with the Nat...

Fitch Forecasts Significant Base Rate Cut by Bank of Korea to 1.75% Amid Economic Slowdown

Fitch Ratings forecasts the Bank of Korea will lower its base rate to 1.75% due to economic slowdown, with weak domestic demand and exports. The agency also discusses potential imp...

Surge in South Korean Treasury Bonds: Chinese Investments Spark Market Frenzy

South Korea's treasury bond market is experiencing a surge in foreign investments, driven by expectations of rate cuts and the won's undervaluation. Speculation about Chinese insti...

South Korean Won Plummets Against Dollar: Trade War Fears and Political Turmoil Spark Market Chaos

The won-dollar exchange rate in Seoul surged to a five-year high amid fears of a China-U.S. trade war and political instability in South Korea, prompting emergency measures from th...

South Korea's Forex Reserves Climb to $409.7 Billion in March, Defying Market Volatility

South Korea's foreign exchange reserves unexpectedly increased to $409.66 billion in March, despite global market volatility. Factors include higher dollar deposits and a weaker U....

South Korea Faces Persistent Inflation: Consumer Prices Surpass 2% for the Third Month in a Row

South Korea's consumer prices have risen above 2% for the third consecutive month, driven by increases in processed food prices and university tuition fees. The Bank of Korea antic...

Morgan Stanley Predicts Three Additional Rate Cuts by Bank of Korea in 2023

Morgan Stanley predicts the Bank of Korea will cut interest rates three more times in 2023 to combat economic growth pressures, adjusting its forecast for South Korea's growth rate...

South Korea's Knowledge Services Trade Deficit Narrows to $7.26 Billion in 2024

South Korea's knowledge services trade deficit narrowed to $7.26 billion in 2024, a 43% reduction from 2010, with significant growth in exports and a positive shift in trade dynami...

South Korea's Loan Growth Hits Record Low Since 2008, Triggered by Global and Domestic Uncertainties

South Korea's loan growth hits a record low since 2008, influenced by global and domestic uncertainties. The annual loan growth rate dropped to 3.8%, with significant impacts on va...

South Korea's Forex Reserves Dip to a 4-Year Low: What's Behind the $409.2 Billion Drop?

South Korea's foreign exchange reserves have fallen to $409.21 billion, marking a 4-year, 9-month low. This decline is primarily due to expanded foreign exchange swap agreements wi...

South Korea's Economic Growth Forecast Remains Steady at 0.2% for Q1 Amid Challenges

The Bank of Korea forecasts a 0.2% growth in South Korea's real GDP for Q1, amidst economic challenges and government efforts to stimulate demand. Insights into recent data and fut...

South Korea Faces Economic Headwinds: Growth Forecast Slashed Amid Export Slump

Morgan Stanley and J.P. Morgan have revised South Korea's economic growth forecasts downwards, citing export downturns and global uncertainties. The Bank of Korea's rate cuts and p...

South Korea's Economic Growth Slows to 1.2% in Q4 2024, Marking the Slowest Expansion Since 2023

South Korea's GDP growth slowed to 1.2% in Q4 2024, marking the slowest expansion since Q2 2023. Despite a minimal quarterly increase and missing estimates, the full-year growth im...

Corporate Dollar Reserves Surge as Trump's Policies Fuel Market Uncertainty

Following President Trump's inauguration, corporate foreign currency deposits surged by over $3.1 billion, driven by market uncertainties. The Bank of Korea reports a significant r...

South Korea's GDP Growth Forecast for 2025 Adjusted Downward Amid Political Uncertainties

The Bank of Korea has revised its 2025 GDP growth forecast downward to 1.6-1.7%, citing political uncertainty and government budget cuts as key factors. Efforts to stabilize econom...

Asia-Pacific Markets Rally Following US Inflation Data Release

Asia-Pacific markets saw a positive trend following the release of US inflation data, with equities rising across the region. Japan's producer prices and Australia's unemployment r...

18 Months and Counting: How Stock Market Volatility Fuels Continuous Money Supply Growth

The domestic stock market's volatility has led to an 18-month streak of increasing money supply, with the broad money supply (M2) reaching 4,143 trillion won in November. This grow...

Record-Breaking Year: South Korean Individual Investors Pour Over 40 Trillion Won into Bonds

South Korean individual investors set a new record by net purchasing bonds worth over 40 trillion won last year, driven by the Bank of Korea's interest rate cuts and the country's ...

Record High: South Korean Government's Borrowing and Interest Payments Soar

The South Korean government's borrowing from the Bank of Korea hit a record high of 173 trillion won in 2024, with interest payments exceeding 200 billion won. This marks a signifi...

South Korean Won Hits Record High Against USD Since 1997 Financial Crisis

The Korean won-U.S. dollar exchange rate has surged to nearly 1,500 won, the highest since the global financial crisis, with the fourth-quarter average reaching 1,398.75 won. This ...