South Korea has seen a series of financial and economic developments over the past month which has reflected in both domestic challenges and regulatory adjustments – all aimed at stabilising markets and sustaining economic momentum. The Bank of Korea (BOK) has taken strong steps to support growth. At the same time, the Financial Services Commission (FSC) has tightened up regulatory oversight in key areas. In addition, long-term fiscal reforms have been introduced to ensure financial sustainability.
Monetary Policy & Economic Outlook
The BOK remains cautious about the nation’s economic trajectory. Concerned by weaker than expected domestic spending - and the potential impact of U.S. tariff policies - the central bank has cut the benchmark interest rate by 25 basis points to 2.75%. This move was in tandem with a downward revision of South Korea’s GDP growth forecast for 2025 from 1.9% to 1.5%. While the rate cut is intended to stimulate economic activity we see it as highlighting lin...
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