A Hawkish Turn for Korea's Central Bank The Bank of Korea's decision to raise interest rates marks a significant shift in policy as inflation continues to creep up, with headline inflation in June reaching its highest level since 2023.
The move comes at a particularly tumultuous time for Korea's markets, which have been volatile due to swings in semiconductor stocks.
Samsung Electronics and SK Hynix, two of South Korea's largest chipmakers, have led the charge downward, tracking losses in US chip stocks overnight. As a result, the Kospi tumbled over 6%.