BOK chief spells it out: inflation is here to stay and rate hike is coming SEOUL, June 17 (AJP) - The new Bank of Korea governor left little room for doubt: inflation is heading higher and will not come down anytime soon, whether or not the monthslong Gulf war ends this week. The central bank said Wednesday that inflation would remain elevated for a "considerable period," with price pressure gradually shifting from oil and currency shocks to wages and domestic demand. It projected consumer inflation to hover around 3 percent through much of the s June 17, 2026

Former trade deputy to spearhead U.S. investment body SEOUL, June 17 (AJP) - Former Deputy Minister for Trade Park Jong-won has been named the inaugural head of the Korea-U.S. Strategic Investment Corporation, a day before the Special Act for Korea-U.S. Strategic Investment Management takes effect to launch the state-backed body tasked with overseeing South Korea’s $350 billion investment commitment to the United States. The Ministry of Economy and Finance and the preparatory committee for the new state entity announced the appoi June 17, 2026

BOK further builds up rate hike rationale, seeing inflation around 3% 2H SEOUL, June 17 (AJP) - South Korea's annual inflation rate is expected to run close to 3 percent for the first time in three years this year as the broad impact of the three-month Gulf crisis is likely to spill into the second half even if the conflict ends, the Bank of Korea (BOK) warned Wednesday, building the case for an interest rate hike as early as July. In a report on consumer prices released Wednesday, the central bank estimated headline inflation would hover around 3 p June 17, 2026

Korea household debt ratio falls to 6-year low on high nominal GDP SEOUL, June 16 (AJP) - South Korea's household debt-to-gross domestic product ratio dropped to its lowest level in over six years at the end of last year, according to the Bank for International Settlements on Tuesday. While the financial industry attributes the decline to tighter lending rules, the shift was driven more by a surge in nominal economic growth than by a pure reduction in borrowing. Data by the Bank for International Settlements (BIS) showed that the ratio June 16, 2026

Korea's import prices may have peaked out while chip exports power ahead SEOUL, June 16 (AJP) - South Korea's import prices may have peaked out after the Gulf war-driven oil shock eased in May, while soaring semiconductor prices continued to buttress the country's trade strength, central bank data showed Tuesday. The won-denominated import price index fell 0.3 percent in May from a month earlier, according to preliminary export-import price data released by the Bank of Korea. The decline followed a 2.1 percent drop in April after import prices June 16, 2026

Korea's permanent payroll falls for the first time in 26 years on youth job crisis SEOUL, June 15 (AJP) -South Korea's permanent payroll fell for the first time in more than 26 years in May, underscoring a deepening employment crisis among younger workers as demographic decline, industrial restructuring and the early impact of artificial intelligence weigh on hiring. The number of permanent employees stood at 16.74 million in May, down 7,000 from a year earlier, according to the Ministry of Data and Statistics. It marked the first year-on-year decline since De June 15, 2026

BOK governor urges timely rate hikes as inflation, housing risks build SEOUL, June 12 (AJP) - Bank of Korea Governor Shin Hyun-song said Friday the central bank needs to raise interest rates “without delay,” sending his clearest signal yet that South Korea is moving closer to monetary tightening as inflation, housing prices and leveraged stock investment risks build at the same time. Speaking at a ceremony marking the BOK’s 76th founding anniversary, Shin said growth, inflation and financial stability conditions are pointing “re June 12, 2026

Korea's defense of won tested by SpaceX frenzy and foreign exodus SEOUL, June 11 (AJP) - South Korean authorities battling to defend the won near global financial crisis-era levels appeared to move to contain a retail rush into the blockbuster SpaceX listing on Friday, as surging demand for U.S. assets threatens to add pressure on the currency alongside a record foreign capital exodus. The Financial Supervisory Service (FSS) on Thursday summoned auditors from 12 major brokerages and urged them to strengthen internal controls over overseas investme June 11, 2026

Inequality deepens for Korean households on wealth gap and AI rise SEOUL, June 11 (AJP) - South Korea's household inequality is becoming more complex as property-driven wealth gaps combine with renewed income polarization, the Bank of Korea said Thursday. Rising real estate prices have widened wealth gaps between homeowners and non-homeowners, regions and generations. The net wealth Gini coefficient rose to 0.625 in 2025 from 0.584 in 2017, with a higher reading indicating a more unequal distribution. The central bank identified rising prope June 11, 2026

Employment falls for 1st time in 17 months as youth jobs dwindle SEOUL, June 11 (AJP) - South Korea's employment fell for the first time in 17 months in May, largely due to a sharp decline in youth employment and manufacturing jobs, according to data released by the Ministry of Data and Statistics on Thursday. The number of employed people aged 15 and older stood at 29.12 million last month, down 40,000 from a year earlier. Youth employment weakened sharply, with the number of employed people aged 15 to 29 declining by 255,000 to 3.43 mill June 11, 2026