BOK front-loads tightening, but disinflation tests early hikes SEOUL, August 27 (AJP) - The Bank of Korea (BOK) has front-loaded monetary tightening with its first back-to-back rate hikes since January 2023, betting that South Korea's chip-powered economic resilience and increasingly persistent inflation warrant acting before price pressures become harder to contain. The BOK raised its base rate by 25 basis points to 3.00 percent on Thursday, following an identical increase in July. Governor Shin Hyun-song, proving to be a hawk by delive August 27, 2026

UPDATE: BOK stays hawkish after summer back-to-back hike *Updated with additional information, economic outlook and market response SEOUL, August 27 (AJP) -The Bank of Korea (BOK) on Thursday opted for a back-to-back increase to lift the key rate to 3.00 percent - the highest since January 2025 - in preemptive action to rein in inflationary pressure renewed from an economy expected to grow at its fastest pace in five years on the chip boom. The move was almost unanimous, with one dissent, and narrowed the interest-rate gap with th August 27, 2026

UPDATE: BOK lifts 2026 growth forecast to 3.3% *Updated with detailed economic outlook and Gov. Shin's comments SEOUL, August 27 (AJP) -The Bank of Korea (BOK) sharply raised its 2026 growth forecast to 3.3 percent on Thursday, citing a stronger-than-expected semiconductor boom, hours after delivering a second consecutive interest-rate increase to contain persistent inflation pressure. The central bank lifted this year's growth outlook by 0.7 percentage point from its May estimate of 2.6 percent. It also raised its 20 August 27, 2026

Lee meets Samsung chief in private amid push for mega chip cluster SEOUL, August 27 (AJP) - President Lee Jae Myung held a private dinner meeting with Samsung Group chairman Lee Jae-yong earlier this week, according to sources in political and business circles on Thursday. Their talks at an unidentified location in Seoul the previous day are drawing attention for their possible focus on major domestic projects including plans to build a mega semiconductor cluster amid growing U.S. pressure on South Korean companies to expand investment in the U August 27, 2026

BOK delivers back-to-back hike to 3% Aug SEOUL, August 27 (AJP) -The Bank of Korea (BOK) delivered a back-to-back rate hike to bring the benchmark rate to 3.00 percent on Thursday after holding it at 2.50 percent for 14 months through June. The move narrowed the interest-rate gap with the United States to 50 to 75 basis points, with the Federal Reserve's target range at 3.50 percent to 3.75 percent, reducing one source of pressure on the won and capital flows. The BOK said stronger-than-expected growth, persistent i August 27, 2026

Seoul races to find 9 Koreans in Nepal flood SEOUL, August 27 (AJP) -South Korea is sending an emergency response team to Nepal after nine Korean workers at a hydropower construction site went missing in a catastrophic Himalayan flash flood that killed at least 160 people across Nepal and Tibet, with scientists pointing to a massive glacier collapse as the likely trigger. Foreign Minister Cho Hyun convened an emergency task force meeting at 10:30 p.m. Wednesday after contact was lost with the nine employees of Korea South-Ea August 27, 2026

Korea business sentiment hits four-year high on chip boom SEOUL, Aug. 26 (AJP) — South Korean business sentiment rose to its highest level in nearly four years in August, buoyed by strong semiconductor exports and tourism demand even as domestic consumption and factory activity remained weak. The Composite Business Sentiment Index (CBSI) for all industries rose 1.1 points from July to 99.6, the highest reading since September 2022, according to the Bank of Korea (BOK) Wednesday. The outlook for September gained 3.1 points to 99. August 26, 2026

KOFIA survey shows bond market shifts toward BOK hold SEOUL, August 25 (AJP) - Nearly eight in 10 bond-market professionals expect the Bank of Korea (BOK) to hold its policy rate Thursday, marking a sharp shift from the last poll ahead of the July rate-setting meeting, a survey showed Tuesday. The Korea Financial Investment Association (KOFIA) said 79 percent of 100 bond-market professionals it surveyed expected the BOK to keep its base Rate at 2.75 percent. Twenty percent forecast another increase. KOFIA said stronger economic gr August 25, 2026

S. Korea's denuclearization goal remains unchanged: MOFA SEOUL, August 25 (AJP) - The stated goal of peace on the Korean Peninsula means the denuclearization of North Korea, South Korea's foreign ministry said Tuesday. The ministry was restating a position left out of its own account of a phone call between the two allies' top diplomats the night before. That account said Foreign Minister Cho Hyun and U.S. Secretary of State Marco Rubio agreed to keep up close communication on peace on the peninsula and a resolution of the North August 25, 2026

Korea's new household loans hit three-year low in Q2 SEOUL, August 25 (AJP) - South Korean consumer borrowing fell to its lowest in more than three years in the second quarter amid tighter caps on mortgage lending. The average amount of new household loans dropped 3.6 percent in April-June period from the previous quarter to 34.14 million won ($24,687) per borrower, preliminary data from the Bank of Korea (BOK) showed Tuesday. The BOK attributed the decline in part to tighter loan management across the financial sector. The drop August 25, 2026