Press Releases | The Bank of Korea

Interest Rates (Mar 2026)

Tue, 28 Apr 2026 12:00:00 +0900

□ In March 2026, the average interest rate on new deposits was 2.82%, down 1 basis points from the previous month.

― The average interest rate on outstanding amounts of deposits as of end-March was 2.00%, down 1 basis points from the previous month.

□ In March 2026, the average interest rate on new loans was 4.20%, down 6 basis points from the previous month.

― The average interest rate on outstanding amounts of loans as of end-March was 4.27%, same as the previous month.

Business Survey and Economic Sentiment Index (ESI) for April 2026

Tue, 28 Apr 2026 06:00:00 +0900

※ Refer to the attached file for details

Real Gross Domestic Product: First Quarter of 2026 (Advance Estimate)

Thu, 23 Apr 2026 08:00:00 +0900

◈ Real gross domestic product (chained volume measure of GDP) increased by 1.7 percent in the first quarter of 2026

compared to the previous quarter―in year-on-year terms it increased by 3.6 percent.

◈ Real gross domestic income (GDI) increased by 7.5 percent compared to the previous quarter―in year-on-year terms it increased by 12.3 percent.

※ Refer to the attached file for details.

Consumer Tendency Survey for April 2026

Thu, 23 Apr 2026 06:00:00 +0900

The Composite Consumer Sentiment Index (CCSI) for April

2026 stood at 99.2, 7.8 points lower than in March.

* Please refer to the attached files for details.

Producer Price Index - March 2026(preliminary)

Wed, 22 Apr 2026 06:00:00 +0900

* Please refer to the attached files for further details.

Loan Officer Survey on Financial Institution Lending(Developments in Q1 2026 and Outlook for Q2 2026)

Tue, 21 Apr 2026 12:00:00 +0900

※ Please refer to the attached file for details

Inauguration of Bank of Korea Governor

Tue, 21 Apr 2026 10:00:00 +0900

The Bank of Korea Governor, Shin Hyun Song, was inaugurated on April 21, 2026.

* Please refer to the attached file for the inaugural address.

Trade Settlement Currency in Korea 2025

Thu, 16 Apr 2026 12:00:00 +0900

□ The settlement currency for exports:

US dollar(84.2%), euro(5.9%), Korean won(3.4%), Japanese yen(1.9%), Chinese yuan(1.3%)

□ The settlement currency for imports:

US dollar(79.3%), Korean won(6.6%), euro(6.0%), Japanese yen(4.0%), Chinese yuan(3.2%)

* Please refer to the attached file for details.

Monetary and Liquidity Aggregates (February 2026)

Wed, 15 Apr 2026 12:00:00 +0900

□ Broad Money (M2, seasonally adjusted, period-average) increased by 0.0% compared to the previous month.

Export/Import Price Indexes and Trade Indexes - March 2026(preliminary)

Wed, 15 Apr 2026 06:00:00 +0900

* Please refer to the attached files for further details.

Recent Economic Developments (April 2026)

Fri, 10 Apr 2026 12:00:00 +0900

▣ Korea's economy is expected to grow at a slower pace than previously anticipated, as the supply shock stemming from the war in the Middle East is likely to weigh on growth despite the robust semiconductor cycle and the supplementary budget.

▣ CPI inflation faces significant upward pressures from a rise in global oil prices, though government price stabilization measures are expected to partially mitigate such pressures.

▣ Uncertainty surrounding both the growth and inflation outlook has heightened, as geopolitical risks have escalated amid the uncertain path of the U.S. tariff policy.

★Monetary Policy Decision & Opening Remarks to the Press Conference(April 10, 2026)

Fri, 10 Apr 2026 10:30:00 +0900

Monetary Policy Decision

The Monetary Policy Board of the Bank of Korea decided today to leave the Base Rate unchanged at 2.50% for the intermeeting period. There is a high degree of uncertainty surrounding the future course of developments in the Middle East, amid rising upside pressures on inflation, increasing downside risks to growth, and heightened volatility in financial and foreign exchange markets stemming from the Middle East war. The Board, therefore, judged that it is appropriate to maintain the current level of the Base Rate while assessing developments of the conflict and their impacts.

The currently available information suggests that the global economy has continued its relatively favorable growth trend, supported by AI-related investment and fiscal expansion in major economies. However, growth is expected to weaken and inflation to increase, affected by energy price hikes and supply constraints stemming from the war in the Middle East. In global financial markets, volatility of major price variables has expanded significantly as risk-off sentiment has strengthened. Long-term government bond yields rose sharply due to concerns over increases in inflation and subsequent changes in expectations for monetary policy, while the US dollar strengthened and stock prices declined substantially. However, following the temporary ceasefire now between the US and Iran, this trend has partially reversed. Looking ahead, the global economy and financial markets will be affected by developments in the Middle East conflict, by changes in monetary and fiscal policies in major economies and in the trade environment, and by the AI investment trend.

The domestic economy has continued its improvement trend, supported by strong exports and a recovery in consumption, and the increase in the overall number of employed persons has continued to grow. Since the outbreak of the Middle East conflict, however, downward pressure on growth has increased, with economic sentiment weakening and production constraints occurring in some industries. Going forward, growth in the domestic economy is expected to decelerate more than previously projected, as higher energy prices and supply constraints weigh on the impacts of strong semiconductor exports and the implementation of a supplementary budget. Accordingly, the growth rate for this year is expected to be below the February forecast of 2.0%. However, the future path of economic growth will be largely affected by developments in the Middle East, changes in the trade environment, and the trajectories of the semiconductor cycle and of the recovery in domestic demand.

Consumer price inflation rose from February to 2.2% in March, driven by a sharp increase in the prices of petroleum products, while core inflation (excluding food and energy) declined slightly to 2.2%, reflecting a slower increase in the prices of personal services. Short-term inflation expectations among the general public rose slightly from the previous month, to 2.7%. Looking ahead, inflation is expected to rise to the mid- to upper 2% range as upward pressure increases significantly due to increases in global oil prices, although the government’s price stabilization measures are expected to partially mitigate this pressure. Accordingly, consumer price inflation for the year is expected to exceed considerably the February forecast of 2.2%, while core inflation is also likely to be somewhat higher than the previous forecast of 2.1%. Uncertainty surrounding the future path of inflation remains very high, due to movements in global oil prices and the exchange rate, to the effects of the government’s price stabilization measures, and to the extent of cost-pressure transmission.

In financial and foreign exchange markets, the volatility of major price variables has increased significantly. The Korean won to US dollar exchange rate rose to the 1,500 won range due to US dollar appreciation following the war in the Middle East and net sales of domestic stocks by foreign investors, but it declined after the temporary ceasefire between the US and Iran. Korean Treasury bond yields rose sharply due to concerns about inflation at home and abroad and due to the subsequent changes in expectations for monetary policy, and then declined. Stock prices fluctuated significantly after sustaining a steep upward trend, undergoing a correction followed by a partial rebound. Household loans continued their low rate of increase due to the sustained tightening stance of the government’s macroprudential policy. Housing price increases in Seoul and its surrounding areas have slowed and expectations for price increases have also moderated under the influence of the government’s real estate market stabilization measures, but it is necessary to further assess whether a trend toward stabilization will take hold.

The Board will continue to conduct monetary policy in order to stabilize consumer price inflation at the target level over the medium-term horizon as it monitors economic growth while paying attention to financial stability. The domestic economy is facing both increased upside risks to inflation and downside risks to growth due to the war in the Middle East, while uncertainty in the outlook remains significantly high. Regarding financial stability, it is necessary to remain cautious about the impact of increased exchange rate volatility and to continue to monitor whether a stabilization trend in housing prices in Seoul and its surrounding area and in household debt will be sustained. Therefore, the Board will make its policy decisions while closely monitoring changes in domestic and external policy conditions, such as the war in the Middle East, and examining the resulting impacts on inflation, growth, and financial stability.

All seven Monetary Policy Board members unanimously supported the decision to keep the Base Rate unchanged.

Opening Remarks to the Press Conference (April 10, 2026)

Today, the Monetary Policy Board of the Bank of Korea decided to leave the Base Rate unchanged at 2.50%. I will first go over economic conditions at home and abroad, and then explain the background to today’s Base Rate decision.

External conditions have changed significantly following the outbreak of the war in the Middle East shortly after the February Monetary Policy Board meeting. The closure of the Strait of Hormuz and damage to energy infrastructure have led to a sharp surge in global oil prices and have also strained the energy supply. Although the United States and Iran agreed this week to a two-week ceasefire, it remains highly uncertain whether they will smoothly reach a final peace agreement. Even if the situation shifts to a stabilization phase, it is expected to take a considerable period of time for energy supply chains to return to normal.

Accordingly, global economic growth is expected to weaken relative to earlier projections, while inflation is likely to increase. The extent of these developments will depend on the duration of the war in the Middle East as well as on resulting changes in global energy supply-demand conditions and price movements.

In global financial markets, the volatility of major price variables has expanded significantly as risk-off sentiment has strengthened. Long-term government bond yields rose sharply, driven by adjustments of expectations for monetary policy in major economies due to concerns over increases in inflation, while the US dollar strengthened and stock prices in major economies declined substantially. However, following the temporary ceasefire now between the US and Iran, this trend has partially reversed.

Next, looking at domestic conditions, growth in the domestic economy had been stronger than expected through the first quarter, supported by continued strong export growth and a continued recovery in consumption. Since the outbreak of the Middle East conflict, however, downward pressure on growth has increased, with economic sentiment weakening and production constraints occurring in some industries related to energy. Going forward, growth in the domestic economy is expected to decelerate due to higher energy prices and supply constraints, while robust export growth in sectors such as semiconductors and the implementation of the government’s supplementary budget are expected to mitigate downward pressure on the economy to some extent.

Accordingly, the growth rate for this year is projected to be below the February projection of 2.0%, while the future path of economic growth will be largely affected by developments in the Middle East, changes in the trade environment, and the trajectories of the semiconductor cycle and of the recovery in domestic demand.

Regarding domestic inflation, consumer price inflation rose to 2.2% in March from 2.0% in February, driven by a sharp increase in petroleum product prices, despite the government’s measures, such as a price ceiling system for petroleum products, that helped ease the impacts of increases in global oil prices. Core inflation (excluding food and energy) declined from 2.3% to 2.2%, reflecting a slower increase in the prices of personal services. Short-term inflation expectations among the general public rose slightly to 2.7%.

Looking ahead, inflation is expected to rise to the mid- to upper 2% range as upward pressure increases significantly due to increases in global oil prices, although the government’s price stabilization measures are expected to partially mitigate this pressure. Accordingly, consumer price inflation for this year is expected to exceed considerably the February forecast of 2.2%, while core inflation is also likely to be somewhat higher than the previous forecast of 2.1%. However, uncertainty surrounding the future path of inflation also remains very high, related to movements in global oil prices and the exchange rate, to the effects of the government’s price stabilization measures, and to the extent of cost-pressure transmission.

Looking at housing markets and the household debt situation, household loans in the financial sector continued a low growth pace as other loans increased due to demand related to stock investment while the government’s macroprudential policy stance remained tight. Housing price increases in Seoul and its surrounding areas have slowed and expectations for price increases also have moderated under the influence of the government’s real estate market stabilization measures. However, in the outer areas of Seoul and non-regulated areas in the Seoul metropolitan region, housing transactions have increased and housing prices have continued to rise.

Lastly, I will explain the background to the Base Rate decision, which reflects the above mentioned domestic and external conditions. There is a high degree of uncertainty surrounding the future course of developments in the Middle East, amid rising upside pressures on inflation, increasing downside risks to growth, and heightened volatility in financial and foreign exchange markets stemming from the Middle East war. The Board, therefore, judged that it is appropriate to maintain the current level of the Base Rate while assessing developments of the conflict and their impact. All the Board members unanimously supported this decision.

To explain our decision in more detail, the domestic economy is currently facing supply shocks driven by the war in the Middle East. The basic principle of monetary policy in response to supply shocks is clear. If the shocks are temporary, it is desirable to look through those shocks and not respond with interest rate adjustments, taking into account monetary policy transmission lags. On the other hand, if the shocks are prolonged, leading to a broadening of inflationary pressures and heightened inflation expectations, a monetary policy response is required. However, for the time being, it remains difficult to assess how the Middle East situation will develop.

Comparing the current policy environment and the nature of the shock with those during the high inflation period after the Russia-Ukraine war in 2022, when I took office, both the possibility of a firm monetary policy response, as at that time, and the possibility of not doing so remain open. During the Russia-Ukraine war, economic activity was in a phase of recovery, driven by a rebound in consumption that had been suppressed during the COVID-19 pandemic. Accordingly, the shocks stemming from the Russia-Ukraine war acted as a factor pushing up inflation significantly rather than slowing down economic activity, and it was necessary to respond actively to inflationary pressures through interest rate hikes. In contrast, whereas the Russia-Ukraine war had a greater impact on Europe, which has a high dependence on Russian natural gas, the current war is having a larger impact on Asia, where the dependence on Middle Eastern crude oil imports is high. In particular, although the economy is improving, the recovery remains relatively weak due to disparities across sectors, and as the shock has occurred under these conditions, the war is likely to have a significant impact not only on inflation but also on economic activity, raising concerns about the trade-off between inflation and growth. That said, compared with the period of the Russia-Ukraine war, the exchange rate is at a significantly higher level, and economic agents may respond more sensitively to changes in prices as they experienced a period of high inflation following the pandemic. Therefore, it is necessary to remain mindful of the increased possibility that inflation expectations could become unstable.

In consideration of these factors as a whole, the Board decided at this meeting to maintain the current level of the Base Rate. This decision was not simply to defer policy action due to heightened uncertainty, but to more closely assess the evolution of the war in the Middle East and its spillover effects in determining the policy direction.

Therefore, going forward, the Board will determine its policy direction based on additional information related to the war in the Middle East and economic indicators. It will closely assess the magnitude and persistence of the impact of the shock from the war on domestic inflation and growth.

Flow of Funds during 2025(preliminary)

Thu, 09 Apr 2026 12:00:00 +0900

- During 2025, the net lending of the total economy (combined domestic sectors) was 158.2 trillion won, representing an increase when compared to the previous year (116.6 trillion won).

- Refer to the attached file for details.

Financial Market Trends in March 2026

Wed, 08 Apr 2026 19:30:00 +0900

Please refer to the attached files.

Balance of Payments during February 2026 (preliminary)

Wed, 08 Apr 2026 08:00:00 +0900

□ During February 2026, the Korean current account registered a surplus of 23.19 billion dollars.

□ Looking at the financial account, net assets increased by 22.80 billion dollars during February 2026.

Official Foreign Reserves(March 2026)

Fri, 03 Apr 2026 06:00:00 +0900

Please refer to attached files.

Financial Authorities Finalize the Benchmark Rate Reform Plan

Mon, 30 Mar 2026 14:00:00 +0900

□ On March 30 2026, the Bank of Korea and the Financial Services Commission held the 6th Benchmark Rate and Short-Term Financial Market Consultation to finalize the benchmark rate reform plan.

Bank of Korea Extends Operating Hours of BOK-Wire+

Sun, 29 Mar 2026 12:00:00 +0900

□ Effective on March 30, 2026, The Bank of Korea will extend the operating hours of BOK-Wire+, its real-time gross settlement system(RTGS), from the current 09:00–17:30 to 09:00–20:00, representing an extension of two hours and thirty minutes.

* Refer to the attached file for details

Interest Rates (Feb 2026)

Fri, 27 Mar 2026 12:00:00 +0900

□ In February 2026, the average interest rate on new deposits was 2.83%, up 5 basis points from the previous month.

― The average interest rate on outstanding amounts of deposits as of end-February was 2.01%, same as the previous month.

□ In February 2026, the average interest rate on new loans was 4.26%, up 2 basis points from the previous month.

― The average interest rate on outstanding amounts of loans as of end-February was 4.27%, up 2 basis points from the previous month.

Business Survey and Economic Sentiment Index (ESI) for March 2026

Fri, 27 Mar 2026 06:00:00 +0900

※ Refer to the attached file for details

Consumer Tendency Survey for March 2026

Wed, 25 Mar 2026 06:00:00 +0900

The Composite Consumer Sentiment Index (CCSI) for March

2026 stood at 107.0, 5.1 points lower than in February.

* Please refer to the attached files for details.

Producer Price Index - February 2026(preliminary)

Tue, 24 Mar 2026 06:00:00 +0900

* Please refer to the attached files for further details.

Export/Import Price Indexes and Trade Indexes - February 2026(preliminary)

Tue, 17 Mar 2026 06:00:00 +0900

* Please refer to the attached files for further details.

Monetary and Liquidity Aggregates (January 2026)

Fri, 13 Mar 2026 12:00:00 +0900

□ Broad Money (M2, seasonally adjusted, period-average) increased by 0.7% compared to the previous month.

Financial Market Trends in February 2026

Wed, 11 Mar 2026 19:30:00 +0900

Please refer to the attached files.

Gross National Income: Fourth Quarter and Annual 2025 (Preliminary)

Tue, 10 Mar 2026 08:00:00 +0900

◈ Real gross domestic product (chained volume measure of GDP) decreased by 0.2 percent in the fourth quarter of 2025 compared to the previous quarter, 0.1%p higher than the figure given in the advance estimate

◈ Real gross national income (real GNI) increased by 1.4 percent in the fourth quarter of 2025 compared to the previous quarter.

※ Refer to the attached file for details.

Bank of Korea and the Swiss National Bank Renewed their Bilateral Currency Swap Agreement

Mon, 09 Mar 2026 14:00:00 +0900

Bank of Korea and the Swiss National Bank renewed the Swiss Franc–Korean Won Bilateral Swap Arrangement. The size of the arrangement is CHF 10 billion / KRW 18.5 trillion.

Industrial Loans of Depository Corporations during Q4 2025

Mon, 09 Mar 2026 12:00:00 +0900

□Depository corporations increased their industrial lending by 8.6 trillion won in the fourth quarter of 2025.

Balance of Payments during January 2026 (preliminary)

Fri, 06 Mar 2026 08:23:29 +0900

□ During January 2026, the Korean current account registered a surplus of 13.26 billion dollars.

□ Looking at the financial account, net assets increased by 5.63 billion dollars during January 2026.

Official Foreign Reserves(February 2026)

Thu, 05 Mar 2026 06:00:00 +0900

Please refer to attached files.

Interest Rates (Jan 2026)

Fri, 27 Feb 2026 12:00:00 +0900

□ In January 2026, the average interest rate on new deposits was 2.78%, down 12 basis points from the previous month.

― The average interest rate on outstanding amounts of deposits as of end-January was 2.01%, up 1 basis points from the previous month.

□ In January 2026, the average interest rate on new loans was 4.24%, up 5 basis points from the previous month.

― The average interest rate on outstanding amounts of loans as of end-January was 4.25%, up 2 basis points from the previous month.

Economic Outlook (February 2026)

Thu, 26 Feb 2026 13:30:00 +0900

▣ Korea's economic growth is projected at 2.0%, well above last year's 1.0% (Nov. '25 forecast: 1.8%).

￭ This reflects the robust semiconductor cycle and a favorable global economic backdrop, despite the impact of U.S. tariffs and sluggish construction investment.

▣ CPI inflation this year is revised slightly upward to 2.2% (Nov. '25 forecast: 2.1%).

￭ Demand-side pressures remain limited; the revision reflects cost-push pressures from certain items, including semiconductors.

▣ Going forward, the semiconductor cycle, trade environment, and geopolitical tensions will be key factors shaping the projection trajectory.

★Monetary Policy Decision & Opening Remarks to the Press Conference(February 26, 2026)

Thu, 26 Feb 2026 10:30:00 +0900

Monetary Policy Decision

The Monetary Policy Board of the Bank of Korea decided today to leave the Base Rate unchanged at 2.50% for the intermeeting period. With inflation expected to remain stable near the target level, economic growth is projected to continue improving at a stronger than expected pace, and risks to financial stability also remain. The Board, therefore, judged that it is appropriate to maintain the current level of the Base Rate while assessing developments in the domestic and external policy environments.

The currently available information suggests that, despite uncertainties regarding the tariff policies of the United States, the global economy is expected to maintain favorable growth, supported by increases in AI-related investment and expansionary fiscal policies in major economies. Inflation trajectories are expected to diverge across countries. In global financial markets, risk-off sentiment has strengthened somewhat. Long-term government bond yields rose and then fell, affected by concerns about fiscal soundness in major economies and changes in expectations of the US Federal Reserve's monetary policy. The US dollar weakened, due to the appreciation of the Japanese yen and the US Supreme Court’s tariff ruling. Stock prices generally continued their upward trend, reflecting improved corporate earnings, but volatility increased due to concerns over AI overinvestment and the replacement of existing industries. Looking ahead, the global economy and financial markets will be affected by changes in monetary and fiscal policies in major economies and in the trade environment, and by developments in AI investment and geopolitical risks.

The domestic economy has continued its improvement trend, supported by a recovery in consumption and strong exports. The increase in the overall number of employed persons has continued to grow, led by the service sector. Going forward, the domestic economy is expected to continue a recovery in consumption, while growth in exports and facilities investment is projected to accelerate more than previously expected, supported by a strong semiconductor sector and sound global growth, although construction investment is likely to remain sluggish. Consequently, the growth rate is forecast at 2.0% for the year, higher than the November projection of 1.8%. However, there remain both upside and downside risks along the future path of economic growth related to developments in the semiconductor industry, the pace of recovery in domestic demand, monetary and fiscal policies in major economies, US tariff policies, and geopolitical risks.

Consumer price inflation declined to 2.0% in January owing to slower increases in the prices of petroleum products and of agricultural, livestock, and fisheries products. Core inflation (excluding food and energy) remained unchanged from the previous month at 2.0%. Short-term inflation expectations among the general public remained the same as the previous month, at 2.6%. Consumer price and core inflation for this year are forecast at 2.2% and 2.1%, respectively, higher than the November projection of 2.1% and 2.0%, affected by upward cost pressures on some items, including electronic devices. The future path of inflation is likely to be affected by movements in global oil prices and the exchange rate, by economic conditions at home and abroad, and by the government’s price stabilization measures.

In financial and foreign exchange markets, the volatility of major price variables has increased. The Korean won to US dollar exchange rate fluctuated, influenced by supply-demand imbalances stemming from residents’ overseas securities investments and foreign investors’ sales of domestic stocks, as well as by movements in neighboring countries’ currencies, such as the Japanese yen, and the rate recently declined significantly. Stock prices continued to rise sharply, supported by solid earnings forecasts in major sectors and expectations of regulatory reforms in the capital market, but volatility increased, affected by global stock market movements. Korean Treasury bond yields rose significantly due to weakened expectations of a Base Rate cut and supply-demand pressures stemming from fund flows, and then they partially reversed. Household loans increased only slightly due to the continued tightening stance of the government’s macroprudential policy. Housing price increases in Seoul and its surrounding areas slowed under the influence of the government’s real estate market stabilization measures, and their future trajectory warrants close monitoring.

The Board will continue to conduct monetary policy in order to stabilize consumer price inflation at the target level over the medium-term horizon as it monitors economic growth while paying attention to financial stability. The domestic economy is projected to continue its improving growth trend, while inflation is expected to increase slightly but remain on a stable trajectory around the target. Regarding financial stability, it is necessary to remain cautious about risks associated with housing prices in Seoul and its surrounding areas, with household debt, and with the impact of exchange rate volatility. Therefore, the Board will make its policy decisions, supporting a recovery in economic growth, while closely monitoring changes in domestic and external policy conditions and the resulting impact on inflation dynamics and financial stability developments.

All seven Monetary Policy Board members unanimously supported the decision to keep the Base Rate unchanged.

Opening Remarks to the Press Conference (February 26, 2026)

Today, the Monetary Policy Board (MPB) of the Bank of Korea decided to leave the Base Rate unchanged at 2.50%. I will first go over economic conditions at home and abroad, and then explain the background to today’s Base Rate decision.

Starting with changes in external conditions, despite uncertainties regarding the tariff policies of the United States, the global economy is expected to maintain favorable growth, supported by increases in AI-related investment and expansionary fiscal policies in major economies. In the United States, amid stronger than expected employment, the US economy is expected to continue its robust growth, supported by increased investment in the AI sector and tax reduction policies. The euro area is projected to maintain a moderate growth trend, influenced by the expansion of fiscal spending and accommodative financial conditions. China is expected to see slower growth than last year due to the impact of US tariff policies, but this will likely be mitigated by measures to boost domestic demand and efforts to diversify exports.

Regarding inflation in major economies, consumer price inflation in the US has declined to the mid-2% level, but there remain uncertainties regarding the effects of tariffs. In the euro area, inflation is projected to continue to be slightly below 2% amid low demand-side pressures.

In global financial markets, risk-off sentiment has strengthened somewhat. Long-term government bond yields in major economies rose and then fell, affected by concerns about fiscal soundness in major economies and changes in expectations of the US Federal Reserve’s monetary policy. Stock prices generally continued their upward trend, supported by favorable corporate earnings, but volatility increased due to concerns over AI overinvestment and the replacement of existing industries. The US dollar weakened overall, due to the appreciation of the Japanese yen and the US Supreme Court’s tariff ruling.

Next, looking at domestic conditions, the domestic economy has continued its improvement trend. Although construction investment remained sluggish, private consumption sustained its recovery, supported by favorable economic sentiment and improvements in income conditions, such as wages. Exports maintained strong growth, led by the IT sector, such as semiconductors and computers, despite the impact of tariffs.

In financial and foreign exchange markets, the volatility of major price variables has increased. The Korean won to US dollar exchange rate fluctuated, influenced by supply-demand imbalances stemming from residents’ overseas investments and foreign investors’ sales of domestic stocks, as well as by movements in neighboring countries’ currencies, such as the Japanese yen, and then recently declined significantly. Stock prices continued to rise sharply, supported by solid earnings forecasts in major sectors and the government’s ongoing efforts to improve the regulatory framework in the capital market. However, volatility increased, affected by the previously mentioned global stock market movements. Korean Treasury bond yields rose significantly due to weakened expectations of a Base Rate cut and supply-demand pressures stemming from fund flows, and that upward trend was recently partially reversed.

Looking at housing markets and the household debt situation, household loans in the financial sector continued to show slower growth amid the continued tightening stance of the government’s macroprudential policy. Housing price increases in Seoul and its surrounding areas slowed under the government’s plan to end the temporary suspension of higher capital gains taxes on multiple-home owners, and their future trajectory warrants close monitoring.

We have also revisited forecasts for growth and inflation to reflect changes in domestic and external conditions since our last Economic Outlook in November.

To begin with, the GDP growth rate is projected at 2.0% for this year, higher than the November projection of 1.8%. To explain the upward revision of 0.2%p in more detail, first, owing to the strong semiconductor cycle and the favorable growth trend of the global economy, growth in exports and facilities investment is projected to be higher than previously expected, which has acted as a factor raising this year’s growth rate by 0.35%p. On the consumption side as well, improved income conditions stemming from solid corporate performance are estimated to have added approximately 0.05%p. In contrast, the slower-than-anticipated recovery in construction investment has acted as a downward factor, lowering the growth forecast by about 0.2%p. Meanwhile, concerning last week's US Supreme Court ruling invalidating reciprocal tariffs, the impact may vary depending on how the US government responds, including the imposition of product-specific tariffs. At present, however, as tariff rates applied to Korea are expected to remain unchanged under the US government’s temporary tariff measures, the impact on the growth outlook, including exports, is judged to be limited at this point. The future growth path remains subject to both upside and downside risks, including the US tariff policies mentioned above, the developments in the semiconductor industry, the pace of domestic demand recovery, and monetary and fiscal policies in major economies.

Next, consumer price inflation and core inflation for this year are projected at 2.2% and 2.1%, respectively, each revised upward by 0.1%p from the previous forecast. This reflects upward cost pressures on some items, including electronic devices, stemming from higher semiconductor prices. The future path of inflation is likely be affected by movements in global oil prices and the exchange rate, as well as by the pace of recovery in the domestic economy.

Lastly, I will explain the background to the Base Rate decision, which reflects the above mentioned domestic and external conditions. With inflation expected to remain stable near the target level, economic growth is projected to continue improving at a stronger than expected pace, and risks to financial stability also remain. The Board, therefore, judged that it is appropriate to maintain the current level of the Base Rate while assessing developments in the domestic and external policy environments. All the Board members unanimously supported this decision.

To explain our decision in more detail, first and foremost, the growth rate is forecast to be 2%, higher than the November forecast, supported by a recovery in domestic demand and solid exports of the IT sector. However, despite the upward revision of the growth rate forecast, considering that growth in the non-IT sector remains at 1.4%, unchanged from the previous forecast, the gap between at the IT and non-IT sectors could, if anything, widen further. Accordingly, we will need to continue monitoring the strength and breadth of the economic recovery.

Next, from a financial stability perspective, it was judged that continued attention should be paid to heightened volatility in the financial and foreign exchange markets and to developments in the housing market in Seoul and its surrounding areas. First, although the Korean won to US dollar exchange rate has recently fallen significantly, volatility still remains high. In particular, while overseas securities investment by the National Pension Service (NPS) has declined, portfolio investment by other residents has increased at a pace similar to the sharp increase seen in October and November last year, indicating that supply-demand pressures in the foreign exchange market persist. Stock prices have continued their steep upward trend on the back of strong corporate earnings, but continued attention should be paid to the possibility that volatility may increase amid growing concerns over a correction in global stock markets. Korean Treasury bond yields have risen considerably recently, reflecting changes in expectations for monetary policy and fund flows. Given this, it is necessary to closely monitor their future path and spillover effects. In addition, although the pace of increase in housing prices in Seoul and its surrounding areas has moderated owing to government measures, given that elevated expectations of price increases have persisted, it is necessary to further assess whether a trend toward stabilization is taking hold.

Lastly, while this year’s inflation outlook has been revised upward slightly, demand-side pressures are not significant, and inflation is expected to remain on a stable trajectory around the target level. The Board thus judged that it is appropriate to maintain the current level of the Base Rate and to evaluate the changes in domestic and external policy conditions.

I would like to address the future direction of monetary policy. With inflation remaining stable around the target level, economic growth is projected to continue its improving trend. Regarding financial stability, it is necessary to remain cautious about risks such as housing prices in the Seoul and its surrounding areas, household debt, and exchange rate volatility. Taking these factors into account, the Board considers it necessary to make its policy decisions, supporting a recovery in economic growth, while closely monitoring changes in domestic and external policy conditions and resulting impacts.

International Investment Position(2025)

Wed, 25 Feb 2026 12:00:00 +0900

Please refer to the attached.

Business Survey and Economic Sentiment Index (ESI) for February 2026

Wed, 25 Feb 2026 06:00:00 +0900

※ Refer to the attached file for details

Borrower-Level Household Debt Statistics in Q4 2025

Tue, 24 Feb 2026 12:00:00 +0900

Please refer to attached files.

Producer Price Index - January 2026(preliminary)

Tue, 24 Feb 2026 06:00:00 +0900

□ The Producer Price Index increased by 0.6% month-on-month in January 2026 ―in year-on-year terms it increased by 1.9%.

* Please refer to the attached files for further details.

Consumer Tendency Survey for February 2026

Tue, 24 Feb 2026 06:00:00 +0900

The Composite Consumer Sentiment Index (CCSI) for February 2026

stood at 112.1, 1.3 point higher than that in January.

* Please refer to the attached files for details.

Household Credits in Q4 2025

Fri, 20 Feb 2026 12:00:00 +0900

□ Total household credits outstanding increased by 14.0 trillion won in Q4 2025 to stand at 1,978.8 trillion won as of end-Dec, with household loans totaling 1,852.7 trillion won and merchandise credits 126.0 trillion won.

o Household loans increased by 11.1 trillion won during the quarter, and merchandise credits increased by 2.8 trillion won.

Monetary and Liquidity Aggregates (December 2025)

Fri, 13 Feb 2026 12:00:00 +0900

□ Broad Money (M2, seasonally adjusted, period-average) increased by 0.6% compared to the previous month.

Export/Import Price Indexes and Trade Indexes - January 2026(preliminary)

Fri, 13 Feb 2026 06:00:00 +0900

□ The Export Price Index (KRW basis) increased 4.0% from the previous month.

o The index increased by 7.8% year-on-year in January of 2026.

□ The Import Price Index (KRW basis) increased 0.4% from the previous month.

o It decreased by 1.2% year-on-year in January of 2026.

□ The Export Volume Index increased by 28.3% and The Import Volume Index increased by 14.5% year-on-year in January of 2026.

o The Export Value Index increased by 37.3% and The Import Value Index increased by 12.5% year-on-year in January of 2026.

□ The Net Barter Terms of Trade Index increased by 8.9% year-on-year in January of 2026.

* Please refer to the attached files for further details.

Financial Market Trends in January 2026

Wed, 11 Feb 2026 19:30:00 +0900

Please refer to the attached files.

Balance of Payments during December 2025 (preliminary)

Fri, 06 Feb 2026 08:00:00 +0900

□ During December 2025, the Korean current account registered a surplus of 18.70 billion dollars.

□ Looking at the financial account, net assets increased by 23.77 billion dollars during December 2025.

Bank of Korea and Bank Indonesia Signed a Renewal of Bilateral Currency Swap Arrangement

Thu, 05 Feb 2026 14:00:00 +0900

Bank of Korea and Bank Indonesia today announced a renewal of a bilateral currency swap arrangement (BCSA).

The current extension will be effective for five years, from March 6, 2026 to March 5, 2031.

* Please refer to the attached file for details.

BI and BOK Continue Cooperation on Korea–Indonesia Cross-Border QR Payment Interlinkage

Thu, 05 Feb 2026 14:00:00 +0900

□ On February 5, 2026, Bank Indonesia (BI) and Bank of Korea (BOK) reviewed the progress of the cross-border QR-based payment service interlinkage and agreed to continue close cooperation going forward.

* Please refer to the attached file for details.

Official Foreign Reserves(January 2026)

Wed, 04 Feb 2026 06:00:00 +0900

Please refer to attached files.

Interest Rates (Dec 2025)

Tue, 27 Jan 2026 12:00:00 +0900

□ In December 2025, the average interest rate on new deposits was 2.90%, up 9 basis points from the previous month.

― The average interest rate on outstanding amounts of deposits as of end-December was 2.00%, down 2 basis points from the previous month.

□ In December 2025, the average interest rate on new loans was 4.19%, up 4 basis points from the previous month.

― The average interest rate on outstanding amounts of loans as of end-December was 4.23%, up 2 basis points from the previous month.

Business Survey and Economic Sentiment Index (ESI) for January 2026

Tue, 27 Jan 2026 06:00:00 +0900

※ Refer to the attached file for details

Consumer Tendency Survey for January 2026

Fri, 23 Jan 2026 06:00:00 +0900

The Composite Consumer Sentiment Index (CCSI) for January 2026

stood at 110.8, 1.0 point higher than that in December.

* Please refer to the attached files for details.

Real Gross Domestic Product: Fourth Quarter and Annual 2025 (Advance Estimate)

Thu, 22 Jan 2026 08:00:00 +0900

◈ Real gross domestic product (chained volume measure of GDP) decreased by 0.3 percent in the fourth quarter of 2025

compared to the previous quarter―in year-on-year terms it increased by 1.5%.

◈ Real GDP increased by 1.0 percent in 2025.

※ Refer to the attached file for details.

Producer Price Index - December 2025(preliminary)

Tue, 20 Jan 2026 06:00:00 +0900

□ The Producer Price Index increased by 0.4% month-on-month in December 2025 ―in year-on-year terms it increased by 1.9%.

□ The month-on-month changes in the major sub-indices are as follows:

o Agricultural, forestry & marine products: 3.4%

o Manufacturing products: 0.4%

o Electric power, gas, water & waste: 0.2%

o Services: 0.1%

□ The Producer Price index increased by 1.2% year-on-year in 2025.

* Please refer to the attached files for further details.

Loan Officer Survey on Financial Institution Lending(Developments in Q4 2025 and Outlook for Q1 2026)

Mon, 19 Jan 2026 12:00:00 +0900

※ Please refer to the attached file for details

Recent Economic Developments (January 2026)

Thu, 15 Jan 2026 12:00:00 +0900

▣ Korea's economic growth is expected to remain in line with the November 2025 outlook, as the robust semiconductor cycle and the consumption recovery continue.

￭ Major uncertainties on the growth path are related to factors such as the semiconductor cycle, the global trade environment, and growth trends in major economies.

▣ CPI inflation this year is projected to remain stable in line with the previous outlook, as upside factors such as the elevated exchange rate are offset by downside factors including weak global oil prices and the government's price stabilization measures.

￭ Looking ahead, the inflation trajectory will likely be influenced by movements in the exchange rate and oil prices, as well as domestic and global economic developments.

★Monetary Policy Decision & Opening Remarks to the Press Conference(January 15, 2026)

Thu, 15 Jan 2026 10:30:00 +0900

Monetary Policy Decision

The Monetary Policy Board of the Bank of Korea decided today to leave the Base Rate unchanged at 2.50% for the intermeeting period. Along with inflation expected to stabilize gradually, economic growth continues to improve and risks to financial stability also remain. The Board, therefore, judged that it is appropriate to maintain the current level of the Base Rate while assessing developments in the domestic and external policy environments.

The currently available information suggests that, despite the impact of the tariff policies of the United States, the global economy is expected to maintain moderate growth, supported by expansionary fiscal policies in major economies and by continued AI-related investment. Inflation trajectories are expected to diverge across countries. In global financial markets, long-term government bond yields increased on the back of weakening expectations of additional rate cuts and concerns about fiscal soundness in major economies. The US dollar weakened, and then strengthened, influenced by better than expected US economic indicators. Stock prices continued their upward trend on expectations of an improvement in corporate earnings. Looking ahead, the global economy and financial markets will be influenced by changes in the monetary and fiscal policies in major economies, and by the global trade environment and geopolitical risks.

In terms of the domestic economy, despite sluggishness in construction investment, growth has continued its improvement trend, supported by a sustained recovery in consumption and by continued export growth. The increase in the overall number of employed persons has continued to grow, led by the service sector. Going forward, exports are projected to remain favorable due to the strong semiconductor sector, and domestic demand is also expected to sustain its improvement trend, led by a continued recovery in consumption and by easing sluggishness in construction investment. The growth rate is expected to be broadly consistent with the November forecast of 1.8% for this year. However, upside risks are judged to have increased somewhat, reflecting the accelerating upward trend in the semiconductor sector and the stronger than expected growth in major economies.

Consumer price inflation declined slightly to 2.3% in December, reflecting a slower increase in the prices of agricultural, livestock, and fisheries products, despite a faster rise in petroleum product prices. Core inflation (excluding food and energy) remained unchanged from the previous month at 2.0%. Short-term inflation expectations among the general public remained the same as the previous month at 2.6%. Looking ahead, inflation is expected to gradually decline to the 2% level supported by stable global oil prices, although the elevated exchange rate is likely to exert upward pressure. Both headline and core inflation for this year are expected to be generally consistent with the November forecast of 2.1% and 2.0%, respectively. The future path of inflation is likely to be affected by movements in the exchange rate and global oil prices, by economic conditions at home and abroad, and by the government’s price stabilization measures.

In financial and foreign exchange markets, the Korean won to US dollar exchange rate declined sharply following foreign exchange market stabilization measures, but subsequently rose again to the mid- to upper 1,400 won range driven by US dollar strength, Japanese yen weakness, heightened geopolitical risks, and continued investment overseas by residents. Korean Treasury bond yields rose significantly as expectations of the Base Rate cut weakened, but later declined somewhat. Stock prices increased sharply on expectations of stronger earnings in major sectors, including semiconductors. Household loans continued their slowing trend, led by a slowdown in the increase of housing-related loans and by a net repayment of other loans, while housing prices in Seoul and its surrounding areas continued to rise at a high pace.

The Board will continue to conduct monetary policy in order to stabilize consumer price inflation at the target level over the medium-term horizon as it monitors economic growth while paying attention to financial stability. The domestic economy has continued on an improving growth trend, with upside risks to the growth path having increased somewhat. Inflation is expected to gradually decline, although the elevated exchange rate remains a source of upside risk. Regarding financial stability, risks still remain related to housing prices in Seoul and its surrounding areas, to household debt, and to the heightened exchange rate volatility. Therefore, the Board will make its policy decisions, amid supporting a recovery in economic growth, while closely monitoring changes in domestic and external policy conditions and the resulting impact on inflation dynamics and financial stability developments.

Opening Remarks to the Press Conference (January 15, 2026)

Starting with changes in external conditions, despite the impact of the tariff policies of the United States, the global economy is expected to maintain moderate growth, supported by expansionary fiscal policies in major economies and by continued AI-related investment. The US economy is expected to continue its robust growth, driven by increased investment in the AI sector and tax reduction policies while the effects of tariffs are proving less significant than initially expected. The euro area is projected to show a favorable growth trend, influenced by the expansion of fiscal spending and accommodative financial conditions. China is expected to see slower growth than last year due to weakening exports, but the pace of deceleration is likely to be moderate, supported by measures to boost domestic demand.

Regarding inflation in major economies, consumer price inflation in the US is expected to remain at the upper 2% level before slowing in the second half of this year as the effects of tariffs ease gradually. In the euro area, inflation is projected to continue to be below the target level amid low demand-side pressures.

In global financial markets, long-term government bond yields increased on the back of weakening expectations of additional rate cuts and concerns about fiscal soundness in major economies. The US dollar weakened and then strengthened, influenced by better than expected US economic indicators and increased geopolitical risks since the beginning of the year. Stock prices continued their upward trend on expectations of an improvement in corporate earnings. Next, looking at domestic conditions, growth is judged to be maintaining an underlying improvement trend, although growth in the fourth quarter of last year somewhat weakened due to the base effects of a strong increase in the growth rate in the third quarter. Although construction investment remained sluggish, private consumption sustained its recovery, supported by robust consumer sentiment and government measures to boost domestic demand. Exports showed strong growth, led by the semiconductor sector, despite the impact of tariffs.

Looking ahead, the domestic economy is expected to sustain its improvement trend since the second half of last year, supported by continued solid growth in exports, an ongoing recovery in consumption, and easing sluggishness in construction investment. The growth rate is expected to be broadly consistent with the November forecast of 1.8% for this year. However, upside risks are judged to have increased somewhat, reflecting the accelerating upward trend in the semiconductor sector and the stronger than expected growth in major economies. However, it should be noted that the recovery is K-shaped, with a wide gap across sectors, as robust performance in the IT sector contrasts with continued weakness in non-IT sectors.

Consumer price inflation declined slightly to 2.3% in December, reflecting a slower increase in the prices of agricultural products. Core inflation (excluding food and energy) remained unchanged from the previous month at 2.0%. Short-term inflation expectations among the general public remained the same as the previous month at 2.6%. Going forward, inflation is expected to gradually decline to the target level (2%) supported by stable global oil prices, although the elevated exchange rate is likely to exert upward pressure. Consequently, both headline and core inflation for this year are expected to be generally consistent with the November forecast of 2.1% and 2.0%, respectively.

In financial and foreign exchange markets, the Korean won to US dollar exchange rate, which had continued to rise, declined sharply toward the end of last year following foreign exchange market stabilization measures, but subsequently rose again to the mid- to upper 1,400 won range driven by US dollar strength, Japanese yen weakness, heightened geopolitical risks, as well as persistent supply-demand imbalances. Korean Treasury bond yields rose significantly as expectations of the Base Rate cut weakened, but later declined somewhat. Stock prices increased sharply on expectations of stronger earnings in major sectors, including semiconductors. However, the extent of gains varied considerably across sectors.

Looking at housing markets and the household debt situation, household loans in the financial sector continued their slowing trend, led by a slowdown in the increase of housing-related loans and by a net repayment of other loans. However, housing prices in Seoul and its surrounding areas continued to rise at a high pace, while prices in the rest of the country have also risen slightly.

Lastly, I will explain the background to the Base Rate decision, which reflects the abovementioned domestic and external conditions. Along with inflation expected to stabilize gradually, economic growth continues to improve, and risks to financial stability also remain. The Board, therefore, judged that it is appropriate to maintain the current level of the Base Rate while assessing developments in the domestic and external policy environments. All the Board members unanimously supported this decision.

To explain our decision in more detail, first and foremost, we have judged that upside risks to the future growth path have increased somewhat. Although there are downside risks such as prolonged sluggishness in the construction industry and performance disparities across sectors, the expansion of the upturn in the semiconductor sector and stronger than expected growth in major countries are expected to have a positive impact on domestic exports and the growth path.

Next, from a financial stability perspective, it was judged that continued attention should be paid to developments in the foreign exchange and housing markets. Although the exchange rate fell by more than 40 won against the US dollar following foreign exchange market stabilization measures implemented at the end of December, it has risen again this year to the mid- to upper 1,400 won range, warranting a high degree of vigilance. This reflects a combination of factors, including recent US dollar strength and Japanese yen weakness, together with heightened geopolitical risks stemming from developments in Iran and Venezuela.

Moreover, while overseas investment by the National Pension Service (NPS) has declined, imbalances in foreign exchange supply and demand have persisted, as the pace of overseas investment by other residents has accelerated to levels comparable to last October-November, when it hit its peak for the year. In addition, vigilance is warranted regarding household debt, as the housing market in Seoul and its surrounding areas continues to record elevated price growth, with Seoul’s annualized rate reaching around 10%, and as price spillover effects are also emerging in non-regulated areas of the region.

Lastly, while the inflation rate is expected to gradually decline to the target level, we judged that attention should also be paid to the possibility that the exchange rate could pose an upside risk. The Board thus judged that it is appropriate to maintain the current level of the Base Rate and to evaluate the changes in domestic and external policy conditions.

I would like to address the future direction of monetary policy. With inflation expected to gradually stabilize toward the target level, upside risks to the future growth path appear to have increased modestly. Regarding financial stability, it is necessary to remain cautious about risks such as housing prices in Seoul and its surrounding areas, household debt, and especially the impact of heightened exchange rate volatility. Taking these factors into account, the Board considers it necessary to make its policy decisions, amid supporting a recovery in economic growth, while closely monitoring changes in domestic and external policy conditions and the resulting impact on inflation dynamics and financial stability developments.

Furthermore, the Board decided to extend the Temporary Special Support program for low-credit self-employed individuals and for small and medium-sized enterprises (SMEs) by six months. This takes into account the delayed recovery of SMEs and regional economies, despite the continued improvement in economic growth.

Financial Market Trends in December 2025

Wed, 14 Jan 2026 19:30:00 +0900

Please refer to the attached files.

Monetary and Liquidity Aggregates (November 2025)

Wed, 14 Jan 2026 12:00:00 +0900

□ Broad Money (M2, seasonally adjusted, period-average) remained unchanged from the previous month.

Export/Import Price Indexes and Trade Indexes - December 2025(preliminary)

Wed, 14 Jan 2026 06:00:00 +0900

□ The Export Price Index (KRW basis) increased 1.1 percent from the previous month.

o The index increased 5.5 percent over the last 12 months.

□ The Import Price Index (KRW basis) increased 0.7 percent from the previous month.

o It increased 0.3 percent over the last 12 months.

□ The Net Barter Terms of Trade Index increased by 5.4% year-on-year in December of 2025.

* Please refer to the attached file.

Balance of Payments during November 2025 (preliminary)

Fri, 09 Jan 2026 08:00:00 +0900

□ During November 2025, the Korean current account registered a surplus of 12.24 billion dollars.

□ Looking at the financial account, net assets increased by 8.27 billion dollars during November 2025.

Flow of Funds during the 3rd quarter of 2025(preliminary)

Thu, 08 Jan 2026 12:00:00 +0900

- During the third quarter of 2025, the net lending of the total economy (combined domestic sectors) was 46.3 trillion won, representing an increase when compared to the previous quarter (41.5 trillion won).

- Refer to the attached file for details.

Official Foreign Reserves(December 2025)

Tue, 06 Jan 2026 06:00:00 +0900

Please refer to attached files.

Comprehensive Revision of Monetary and Liquidity Aggregates

Tue, 30 Dec 2025 12:00:00 +0900

* Please refer to attached files.

Business Survey and Economic Sentiment Index (ESI) for December 2025

Tue, 30 Dec 2025 06:00:00 +0900

※ Refer to the attached file for details

Interest Rates (Nov 2025)

Mon, 29 Dec 2025 12:00:00 +0900

□ In November 2025, the average interest rate on new deposits was 2.81%, up 24 basis points from the previous month.

― The average interest rate on outstanding amounts of deposits as of end-November was 2.02%, down 1 basis points from the previous month.

□ In November 2025, the average interest rate on new loans was 4.15%, up 13 basis points from the previous month.

― The average interest rate on outstanding amounts of loans as of end-November was 4.21%, same as the previous month.

Monetary Policy for 2026

Thu, 25 Dec 2025 12:00:00 +0900

□ The Bank of Korea (the “Bank”) will decide whether and when to implement any further Base Rate cuts, based on comprehensive assessment of inflation and growth developments, as well as changes in financial stability conditions.

□ The Bank will strengthen monitoring and risk management for financial and foreign exchange markets and the financial system, and will implement market stabilization measures in a timely manner when necessary.

□ The Bank will continue to improve its lending facilities to ensure financial system stability, and will expand the role of the Bank Intermediated Lending Support Facility as a monetary policy instrument.

□ The Bank will enhance the effectiveness of monetary policy by strengthening policy communication and improving the financial market system.

□ The Bank will continue efforts to improve the payment and settlement system infrastructure, with a view to further advancing the system.

- Please see the attached file for details

Consumer Tendency Survey for December 2025

Wed, 24 Dec 2025 08:00:00 +0900

The Composite Consumer Sentiment Index (CCSI) for December 2025

stood at 109.9, 2.5 points lower than that in November.

* Please refer to the attached files for details.

Compilation Results of Borrower-Level Household Debt Statistics

Mon, 22 Dec 2025 17:09:18 +0900

Please refer to attached files.

Producer Price Index - November 2025(preliminary)

Fri, 19 Dec 2025 06:00:00 +0900

□ The Producer Price Index increased by 0.3% month-on-month in November 2025 ―in year-on-year terms it increased by 1.9%.

□ The month-on-month changes in the major sub-indices are as follows:

o Agricultural, forestry & marine products: -2.1%

o Manufacturing products: 0.8%

o Electric power, gas, water & waste: -0.4%

o Services: 0.1%

* Please refer to the attached files for further details.

Financial Statement Analysis for Q3 2025

Wed, 17 Dec 2025 12:00:00 +0900

In the third quarter of 2025, growth indicators of non-financial companies improved compared to the previous quarter and profitability indicators increased compared to same period last year.

※ Please refer to the attached file for details.

Monetary and Liquidity Aggregates (October 2025)

Tue, 16 Dec 2025 12:00:00 +0900

□ Broad Money (M2, seasonally adjusted, period-average) increased by 0.9%

Statistics Release Schedule for 2026

Fri, 12 Dec 2025 09:00:00 +0900

Please refer to attached file.

Export/Import Price Indexes and Trade Indexes - November 2025(preliminary)

Fri, 12 Dec 2025 06:00:00 +0900

□ The Export Price Index (KRW basis) increased 3.7 percent from the previous month.

o The index increased 7.0 percent over the last 12 months.

□ The Import Price Index (KRW basis) increased 2.6 percent from the previous month.

o It increased 2.2 percent over the last 12 months.

□ The Net Barter Terms of Trade Index increased by 5.8% year-on-year in November of 2025.

* Please refer to the attached file.

Financial Market Trends in November 2025

Wed, 10 Dec 2025 19:30:00 +0900

Please refer to the attached files.

Industrial Loans of Depository Corporations during Q3 2025

Fri, 05 Dec 2025 12:00:00 +0900

□ Depository corporations increased their industrial lending by 20.2 trillion won in the third quarter of 2025.

Balance of Payments during October 2025 (preliminary)

Fri, 05 Dec 2025 08:00:00 +0900

□ During October 2025, the Korean current account registered a surplus of 6.81 billion dollars.

□ Looking at the financial account, net assets increased by 6.81 billion dollars during October 2025.

Gross National Income: Third Quarter of 2025 (Preliminary)

Wed, 03 Dec 2025 08:00:00 +0900

◈ Real gross domestic product (real GDP, chained volume measure of GDP) increased by 1.3 percent in the third quarter of 2025 compared to the previous quarter, 0.1 percentage point higher than the figure given in the advance estimate.

◈ Real gross national income (real GNI) increased by 0.8 percent in the third quarter of 2025 compared to the previous quarter.

※ Refer to the attached file for details.

Official Foreign Reserves(November 2025)

Wed, 03 Dec 2025 06:00:00 +0900

Please refer to attached files.

Economic Outlook (November 2025)

Thu, 27 Nov 2025 13:30:00 +0900

▣ GDP growth is projected to be 1.0% for 2025 and 1.8% for 2026, revised up from the August forecasts of 0.9% and 1.6%, respectively.

￭ Despite the headwinds from U.S. tariffs, growth is expected to strengthen, supported by the recovery in domestic demand and a robust semiconductor cycle.

￭ Uncertainty surrounding the future growth path persists, particularly with respect to the global trade environment and the semiconductor cycle.

▣ CPI inflation is forecast at 2.1% for both 2025 and 2026, compared with the August projections of 2.0% and 1.9%, respectively.

￭ Inflation is expected to slightly exceed the previous projection, due to the effects of the weaker Korean won and the recovery in domestic demand, even with downward pressure from lower global oil prices.

￭ Looking ahead, the inflation outlook will be influenced by domestic and global economic conditions, movements in the exchange rate and global oil prices, and the government's price stabilization measures.

★Monetary Policy Decision & Opening Remarks to the Press Conference(November 27, 2025)

Thu, 27 Nov 2025 10:30:00 +0900

Monetary Policy Decision

The Monetary Policy Board of the Bank of Korea decided today to leave the Base Rate unchanged at 2.50% for the intermeeting period. Along with inflation having risen somewhat, the economy continues to improve, driven by consumption and exports, while uncertainty in the growth outlook continues, and risks to financial stability also remain. The Board, therefore, judged that it is appropriate to maintain the current level of the Base Rate and to assess domestic and external policy conditions.

The currently available information suggests that although the global economy is expected to slow due to the tariff policies of the United States, the pace of the slowdown is projected to be gradual, supported by eased U.S.-China trade tensions and by expansionary fiscal policies in major economies. Inflation trajectories are expected to diverge across countries. In global financial markets, long-term Treasury yields and the U.S. dollar index rose, and then partially reversed, influenced by the changes in expectations of the U.S. Federal Reserve rate cuts and by fiscal conditions in major countries. Stock prices continued their upward trend and then underwent a correction due to concerns about overvaluation in the AI sector. Looking ahead, the global economy and financial markets will be influenced by changes in monetary and fiscal policies in major economies and by the global trade environment.

In terms of the domestic economy, despite sluggishness in construction investment, growth has continued its improvement trend, supported by a sustained recovery in consumption and by continued export growth. The increase in the overall number of employed persons has continued, but some major industries, such as manufacturing, have continued to decline in employment. Going forward, domestic demand is expected to sustain its recovery, led by consumption. Although export growth is expected to slow somewhat, it is likely to remain better than expected, supported by the strong semiconductor sector and the conclusion of Korea-U.S. tariff negotiations. Consequently, the growth rate is forecast at 1.0% for this year and at 1.8% for the next year, both higher than the August projections of 0.9% and 1.6%, respectively. Nevertheless, the future path of economic growth is judged to be subject to high uncertainties related to the global trade environment, developments in the semiconductor sector, and the pace of recovery in domestic demand.

Inflation rose in October, with the consumer price and core inflation rates (excluding food and energy) at 2.4% and 2.2%, respectively, influenced by higher prices for travel-related services and agricultural, livestock, and fishery products, as well as by a faster rise in petroleum product prices due to elevated exchange rates. Short-term inflation expectations among the general public remained at 2.6% in November, the same as in October. Looking ahead, although inflation is projected to gradually decline to the 2% level due to stable global oil prices, it is expected to remain somewhat above the previously forecast path, influenced by the elevated exchange rate and a sustained recovery in domestic demand. As a result, consumer price inflation is forecast to be 2.1% for this year, above the August forecast of 2.0%, and core inflation is expected to be consistent with the previous forecast of 1.9%. Also, consumer price inflation and core inflation are forecast to be 2.1% and 2.0%, respectively, in next year, both above the previous forecast of 1.9%. The future path of inflation is likely to be affected by economic conditions at home and abroad, by movements in exchange rates and in global oil prices, and by the government’s price stabilization measures.

In financial and foreign exchange markets, the volatility of major price variables has increased. The Korean won to U.S. dollar exchange rate rose to the mid- to upper 1,400 won range due to factors such as an increase in residents’ overseas securities investment and net sales of domestic stocks by foreign investors. Also, Korean Treasury bond yields increased due to changes in domestic monetary policy expectations. Stock prices continued to rise on the back of a strong semiconductor sector, before undergoing a correction. The increase in household loans has accelerated, led by other loans. Housing price increases and transaction volumes have slowed in Seoul and its surrounding areas, but expectations of rising housing prices still remain high.

The Board will continue to conduct monetary policy in order to stabilize consumer price inflation at the target level over the medium-term horizon as it monitors economic growth while paying attention to financial stability. Regarding the domestic economy, although the growth forecast has been revised upward, there remain both upside and downside risks in its future path, and inflation has been somewhat higher than expected. Regarding financial stability, it is necessary to remain cautious about risks associated with housing prices in Seoul and its surrounding areas, with household debt, and the impact of heightened exchange rate volatility. Therefore, while leaving room for potential rate cuts, the Board will decide whether and when to implement any further Base Rate cuts while closely monitoring changes in domestic and external policy conditions and examining the resulting impact on economic growth, inflation, and financial stability.

Opening Remarks to the Press Conference (November 27 2025)

Starting with changes in external conditions, although the global economy is expected to slow due to the tariff policies of the United States, the pace of the slowdown is projected to be gradual, supported by eased U.S.-China trade tensions and by expansionary fiscal policies in major economies. In the United States, despite a slowdown in employment, growth is expected to be around 2% next year, supported by AI-related investment and tax reduction policies. The euro area is expected to maintain a gradual improvement, driven by the easing of financial conditions and expansionary fiscal policies. In China, growth is projected to weaken due to slowing exports, but economic stimulus measures are expected to partially offset this.

Regarding inflation in major economies, consumer price inflation in the U.S. is expected to fluctuate around 3% for the time being due to the impact of tariffs, while in the euro area, it is projected to fall below 2% amid low demand-side pressures.

In global financial markets, long-term Treasury yields and the U.S. dollar index rose, and then partially reversed, influenced by the changes in expectations of the U.S. Federal Reserve rate cuts and by fiscal conditions in major countries. Stock prices continued their upward trend on the back of strong corporate performance and easing U.S.-China trade tensions, and then underwent a correction due to concerns about overvaluation in AI sectors.

Next, looking at domestic conditions, growth has continued its improvement trend. Although construction investment remained sluggish, private consumption sustained its recovery, supported by improved economic sentiment and government measures to boost domestic demand. Exports maintained stronger-than-expected growth, led by the semiconductor sector, despite a decline in shipments to the U.S. following the imposition of tariffs.

In financial and foreign exchange markets, the volatility of major price variables has increased. The Korean won to U.S. dollar exchange rate rose to the mid- to upper 1,400 won range due to factors such as an increase in residents’ overseas securities investments and net sales of domestic stocks by foreign investors. Also, Korean Treasury bond yields increased due to changes in domestic monetary policy expectations driven by the improved economic outlook and by vigilance over financial stability. Stock prices continued to rise on the back of the strong semiconductor sector, before undergoing a correction due to concerns about overvaluation in the AI sector.

Looking at the housing market and household debt situation, household loan growth in the financial sector accelerated as other loans rose markedly, driven by stock investment demand, while the slowdown in housing-related loans continued. The housing market in Seoul and its surrounding areas saw a decline in transaction volumes, mainly in designated regulatory areas, following the announcement of the government's real estate market stabilization measures on October 15, but the rate of price increase remains elevated and expectations of further increases persist.

We have also revisited forecasts for growth and inflation to reflect changes in domestic and external conditions since our last Economic Outlook in August. To begin with, GDP growth rates are forecast at 1.0% for this year and 1.8% for next year, both higher than the August projections of 0.9% and 1.6%, respectively. To explain the upward revision in more detail, first, owing to the conclusion of Korea-U.S. trade negotiations and the strong global semiconductor market, growth in exports and facilities investment is expected to be higher than our previous forecast. On the consumption side as well, the impact of an expansionary fiscal policy and improving economic sentiment is expected to further accelerate the recovery. By contrast, sluggishness in construction investment is expected to ease, but the pace is likely to be slower than expected. The future path of economic growth is judged to be subject to high uncertainties related to the global trade environment, developments in the semiconductor sector, and the pace of recovery in domestic demand.

Consumer price inflation is projected to be 2.1% for 2025 and 2026, slightly higher than the 2.0% and 1.9% forecast in August. For this year, the increase in the exchange rate and the worsening of weather conditions served as upward revision factors. For next year, an elevated exchange rate and a recovery in domestic demand are likely to raise inflationary pressures more than previously expected. Core inflation is projected to be 1.9% for this year, in line with our previous forecast, but for next year it will be 2.0%, slightly up from the August forecast of 1.9%. The future path of inflation remains highly uncertain due to movements in exchange rates and in global oil prices and the impact of economic improvement.

Lastly, I will explain the background to the Base Rate decision, which reflects the abovementioned domestic and external conditions. Given that inflation has risen somewhat, the economy continues to improve, driven by consumption and exports, while uncertainty in the growth outlook continues, and risks to financial stability also remain. The Board, therefore, judged that it is appropriate to maintain the current level of the Base Rate and to assess domestic and external policy conditions. One member, Shin Sung Hwan, voted against the decision to leave the Base Rate unchanged, proposing to lower it by 25 basis points.

To explain our decision in more detail, first and foremost, although only about a month has passed since the October Monetary Policy Board meeting, there have been multifaceted changes in economic conditions during that time. Starting with the positive aspects, Korea-U.S. trade negotiations were concluded and trade tensions between the U.S. and China eased. Furthermore, the growth in exports and facility investment exceeded expectations, led by the semiconductor sector. On the other hand, heightened volatility of the exchange rate and continued increases in housing prices were negative aspects. Under these circumstances, growth is expected to continue its improvement trend, driven by domestic demand and exports, getting close to its potential rate next year. However, reflecting on the recent growth trend, while growth remains robust in IT sectors, such as semiconductors, sluggishness persists in tariff-sensitive sectors and among local small and medium-sized enterprises (SMEs). In addition, given that next year’s growth will be affected by base effects, and that both upside and downside uncertainties still remain, we deem it necessary to closely monitor developments in various risk factors. Next, while the inflation rate is expected to fluctuate above 2% for the time being and then gradually decline, the elevated exchange rate and the recovery in domestic demand were assessed as potential upside factors. Lastly, from a financial stability perspective, it was judged that continued attention should be paid to household debt and conditions in the foreign exchange market. With high expectations for rising housing prices in Seoul and its surrounding areas persisting, growth in household debt may also accelerate due to increased housing transaction volumes prior to the government’s real estate market stabilization measures on October 15. The exchange rate continues to exhibit high volatility, requiring attention to its impact on inflation and financial stability. The Board thus judged that it is appropriate to maintain the current level of the Base Rate and to evaluate the changes in domestic and external policy conditions.

I would like to address the future direction of monetary policy. Although the growth outlook has been revised upward, upside and downside risks to the economic outlook remain. Moreover, financial stability risks, such as strong expectations of housing price increases and heightened exchange rate volatility, persist and inflation has risen somewhat. Taking these factors into account, the Board considers it necessary to keep open both the possibility of additional Base Rate cuts and maintaining the rate for the time being. In this process, we will decide whether and when to implement any further Base Rate cuts, thoroughly assessing growth, inflation and financial stability based on incoming data.

Interest Rates (Oct 2025)

Wed, 26 Nov 2025 12:00:00 +0900

□ In October 2025, the average interest rate on new deposits was 2.57%, up 5 basis points from the previous month.

― The average interest rate on outstanding amounts of deposits as of end-October was 2.03%, down 1 basis points from the previous month.

□ In October 2025, the average interest rate on new loans was 4.02%, down 1 basis points from the previous month.

― The average interest rate on outstanding amounts of loans as of end-October was 4.21%, down 2 basis points from the previous month.

Business Survey and Economic Sentiment Index (ESI) for November 2025

Wed, 26 Nov 2025 06:00:00 +0900

※ Refer to the attached file for details

Consumer Tendency Survey for November 2025

Tue, 25 Nov 2025 08:00:00 +0900

The Composite Consumer Sentiment Index (CCSI) for November 2025

stood at 112.4, 2.6 points higher than that in October.

* Please refer to the attached files for details.

Producer Price Index - October 2025(preliminary)

Fri, 21 Nov 2025 06:00:00 +0900

□ The Producer Price Index increased by 0.2% month-on-month in October 2025 ―in year-on-year terms it increased by 1.5%.

□ The month-on-month changes in the major sub-indices are as follows:

o Agricultural, forestry & marine products: -4.2%

o Manufacturing products: 0.5%

o Electric power, gas, water & waste: -0.6%

o Services: 0.5%

* Please refer to the attached files for further details.

International Investment Position(Q3 2025)

Wed, 19 Nov 2025 12:00:00 +0900

Please refer to the attached.

Household Credits in Q3 2025

Tue, 18 Nov 2025 12:00:00 +0900

□ Total household credits outstanding increased by 14.9 trillion won in Q3 2025 to stand at 1,968.3 trillion won as of end-Sep, with household loans totaling 1,845.0 trillion won and merchandise credits 123.3 trillion won.

o Household loans increased by 12.0 trillion won during the quarter, and merchandise credits increased by 3.0 trillion won.

Export/Import Price Indexes and Trade Indexes - October 2025(preliminary)

Fri, 14 Nov 2025 06:00:00 +0900

□ The Export Price Index (KRW basis) increased 4.1 percent from the previous month.

o The index increased 4.8 percent over the last 12 months.

□ The Import Price Index (KRW basis) increased 1.9 percent from the previous month.

o It increased 0.5 percent over the last 12 months.

□ The Net Barter Terms of Trade Index increased by 3.9% year-on-year in October of 2025.

* Please refer to the attached file.

Financial Market Trends in October 2025

Thu, 13 Nov 2025 19:30:00 +0900

Please refer to the attached files.

Monetary and Liquidity Aggregates (September 2025)

Wed, 12 Nov 2025 12:00:00 +0900

□ Broad Money (M2, seasonally adjusted, period-average) increased by 0.7%

Bank of Korea signs MOU with the Magyar Nemzeti Bank to Enhance Cooperation

Tue, 11 Nov 2025 09:16:17 +0900

□ The Bank of Korea (BOK) signs a Memorandum of Understanding (MOU) with the Magyar Nemzeti Bank (MNB) on Nov.10, 2025, to promote mutual exchange and cooperation.

* Please refer to the attached file for details.

Balance of Payments during September 2025 (preliminary)

Thu, 06 Nov 2025 08:00:00 +0900

□ During September 2025, the Korean current account registered a surplus of 13.47 billion dollars.

□ Looking at the financial account, net assets increased by 12.90 billion dollars during September 2025.

Official Foreign Reserves(October 2025)

Wed, 05 Nov 2025 06:00:00 +0900

Please refer to attached files.

[BOK-KIF Joint Conference] Policy Challenges for the Development of the Short-Term Financial Market and the Activation of KOFR

Tue, 04 Nov 2025 14:00:00 +0900

Bank of Korea holds Conference on the Development of the Short-Term Financial Market

and the Activation of KOFR,

in Collaboration with Korea Institute of Finance

▣ On Tuesday, November 4, the Bank of Korea and the Korea Institute of Finance jointly hosted a conference under the theme “Policy Challenges for the Development of the Short-Term Financial Market and the Activation of KOFR.”

￭The conference featured opening address by Governor Chang Yong Rhee of the Bank of Korea, a welcoming remarks from President Hangyong Lee of the Korea Institute of Finance, and congratulatory remarks from Vice Chairman Dae-Young Kwon of the Financial Services Commission. Following these speeches, the event proceeded with presentations and a panel discussion.

▣ At the conference, participants examined key policy tasks for promoting the wider adoption and market establishment of the Korea Overnight Financing Rate (KOFR), discussed the stability and institutional improvement of the repo market, and explored the role of the Bank of Korea’s open market operations in ensuring the sound development of the domestic money market.

Bank of Korea and the People's Bank of China Renew the Bilateral Currency Swap Arrangement

Mon, 03 Nov 2025 15:00:00 +0900

Bank of Korea and the People's Bank of China renew the Korean Won-Chinese Yuan Bilateral Currency Swap Arrangement.

The effective period is five years from November 1, 2025 to October 31, 2030 and could be extended by agreement between the two sides.

* Please refer to the attached file for details.

Interest Rates (Sep 2025)

Fri, 31 Oct 2025 12:00:00 +0900

□ In September 2025, the average interest rate on new deposits was 2.52%, up 3 basis points from the previous month.

― The average interest rate on outstanding amounts of deposits as of end-September was 2.04%, down 4 basis points from the previous month.

□ In September 2025, the average interest rate on new loans was 4.03%, down 3 basis points from the previous month.

― The average interest rate on outstanding amounts of loans as of end-September was 4.23%, down 4 basis points from the previous month.

Business Survey and Economic Sentiment Index (ESI) for October 2025

Wed, 29 Oct 2025 06:00:00 +0900

※ Refer to the attached file for details

Real Gross Domestic Product: Third Quarter of 2025 (Advance Estimate)

Tue, 28 Oct 2025 08:00:00 +0900

◈ Real gross domestic product (chained volume measure of GDP) increased by 1.2 percent in the third quarter of 2025

compared to the previous quarter―in year-on-year terms it increased by 1.7%.

◈ Real gross domestic income (GDI) increased by 0.7 percent compared to the previous quarter―in year-on-year terms it increased by 2.2%.

※ Refer to the attached file for details.

Consumer Tendency Survey for October 2025

Tue, 28 Oct 2025 06:00:00 +0900

The Composite Consumer Sentiment Index (CCSI) for October 2025

stood at 109.8, 0.3 points lower than that in September.

* Please refer to the attached files for details.

Loan Officer Survey on Financial Institution Lending(Developments in Q3 2025 and Prospects for Q4 2025)

Mon, 27 Oct 2025 12:00:00 +0900

※ Please refer to the attached file for details

Recent Economic Developments (October 2025)

Thu, 23 Oct 2025 12:00:00 +0900

▣ Korea's economic growth will likely remain broadly in line with the August outlook of 0.9% this year, as consumption and exports remain on a favorable trend despite sluggish construction investment.

￭ Next year, the recovery is expected to continue, led by domestic demand, while exports are projected to slow due to the impact of U.S. tariffs.

￭ Uncertainties surrounding Korea-U.S. and U.S.-China trade negotiations, as well as semiconductor cycle, have intensified on both the upside and downside.

▣ CPI inflation is projected to hover around 2%, reflecting low demand-side pressures and stable global oil prices despite the recent Korean won's depreciation.

￭ Looking ahead, the inflation trajectory will likely be influenced by domestic and global economic developments, as well as movements in exchange rates and oil prices.

★Monetary Policy Decision & Opening Remarks to the Press Conference(October 23, 2025)

Thu, 23 Oct 2025 10:31:57 +0900

Monetary Policy Decision

The Monetary Policy Board of the Bank of Korea decided today to leave the Base Rate unchanged at 2.50% for the intermeeting period. With inflation remaining stable, economic growth, while there is still high uncertainty surrounding the economic growth outlook, has continued its improvement trend, mainly driven by consumption and exports. Also, it is necessary to further monitor financial stability conditions, such as the effects of real estate market stabilization measures on housing markets in Seoul and its surrounding areas and on household debt, as well as exchange rate volatility. The Board, therefore, judged that it is appropriate to maintain the current level of the Base Rate.

The currently available information suggests that the global economy is expected to slow modestly in growth and experience a divergence in inflation trajectories across countries as the impact of U.S. tariff increases starts to materialize. In global financial markets, long-term Treasury yields have declined due to an interest rate cut by the U.S. Federal Reserve and renewed trade tensions between the U.S. and China. The U.S. dollar has fluctuated significantly, influenced by concerns about fiscal soundness in major countries. Stock prices have continued to rise strongly, led by AI-related sectors. Looking ahead, the global economy and financial markets will be influenced by developments in trade negotiations between the U.S. and China, by the prospects for product-specific tariffs, and by changes in monetary and fiscal policies in major economies.

In terms of the domestic economy, despite sluggishness in construction investment, growth has continued its improvement trend, supported by a sustained recovery in consumption and by favorable export growth. The increase in the overall number of employed persons has expanded, but some major industries, such as manufacturing, have continued to decline in employment. Going forward, domestic demand is expected to continue its recovery, led by consumption, and exports are likely to remain favorable for some time owing to the strong semiconductor sector, but the impacts of U.S. tariffs on exports are likely to expand gradually. Consequently, the growth rate is generally consistent with the August forecast of 0.9% for this year and of 1.6% for next year. However, it is assessed that both upside and downside uncertainties have increased, stemming from factors such as trade negotiations between Korea and the U.S. and between the U.S. and China, developments in the semiconductor industry, and the pace of recovery in domestic demand.

Inflation remained on a stable path in September, with consumer price inflation and core inflation (excluding changes in food and energy prices from the CPI) recording 2.1% and 2.0%, respectively. Short-term inflation expectations among the general public fell slightly to 2.5% in September from 2.6% the previous month. Looking ahead, despite upward pressure from the exchange rate, inflation is projected to remain at around 2% due to subdued demand-side pressure and the stabilization of global oil prices. As a result, both headline (2.0% and 1.9%) and core inflation (1.9% and 1.9%) are expected to be consistent with the August forecasts for this year and next year, respectively. The future path of inflation is likely to be affected by economic conditions at home and abroad, by movements in exchange rates and in global oil prices, and by the government’s price stabilization measures.

Financial and foreign exchange markets have remained generally stable, but volatility in the exchange rate and the interest rate has increased somewhat since late September. The Korean won to U.S. dollar exchange rate has risen significantly due to uncertainties regarding tariff negotiations with the U.S. and due to renewed trade tensions between the U.S. and China. Korean Treasury bond yields fluctuated within a narrow range and then rose due to heightened vigilance over financial stability. Stock prices have risen sharply on prospects for favorable semiconductor industry conditions and on expectations for regulatory reforms in the capital market. The increase in household loans has significantly lessened, but housing price increases and transaction volumes have accelerated again in Seoul and its surrounding areas.

The Board will continue to conduct monetary policy in order to stabilize consumer price inflation at the target level over the medium-term horizon as it monitors economic growth while paying attention to financial stability. The domestic economy has continued its improvement trend in growth, but uncertainties have increased due to developments in the ongoing trade negotiations and the outlook for the semiconductor industry, while inflation remains on a stable trajectory. Regarding financial stability, it is necessary to assess the effects of the government’s recently announced real estate market stabilization measures and to remain cautious about the impact of heightened exchange rate volatility. Therefore, the Board will maintain its rate cut stance to mitigate downside risks to economic growth and adjust the timing and pace of any further Base Rate cuts while closely monitoring changes in domestic and external policy conditions and examining the resulting impact on inflation and financial stability.

Opening Remarks to the Press Conference (October 23 2025)

Starting with changes in external conditions, the global economy is expected to slow modestly in growth as the impact of tariff increases starts to materialize. In the United States, despite an expansion in AI-related investment, growth is expected to remain slow compared to last year due to slowing employment and weakening consumption. In the euro area and China, despite economic stimulus measures, including fiscal expansion, growth is likely to be constrained owing to a slowdown in exports.

Regarding inflation in major economies, consumer price inflation in the U.S. is forecast to rise to around 3%, reflecting the impact of elevated tariffs, while inflation in the euro area is expected to remain stable at around 2%, driven by low demand-side pressures.

In global financial markets, long-term Treasury yields have declined due to an interest rate cut by the U.S. Federal Reserve and renewed trade tensions between the U.S. and China. The U.S. dollar has fluctuated significantly, influenced by concerns about fiscal soundness in major countries. Stock prices in major economies have continued to rise strongly, led by AI-related sectors, despite worries over global trade conflicts.

Next, looking at domestic conditions, growth has continued its improvement trend supported by a sustained recovery in consumption and favorable export growth. Although construction investment remained sluggish, private consumption continued to recover on the back of improved economic sentiment and government measures to boost domestic demand. Exports, despite a decline in shipments to the U.S., maintained stronger-than-expected growth owing to the strong semiconductor sector.

Looking ahead, the domestic economy is expected to continue its gradual recovery, and growth for this year and next year is projected to remain broadly in line with the August outlook. However, both upside and downside uncertainties surrounding future growth have increased, including those related to trade negotiations with the U.S., developments in the global semiconductor market, and the pace of recovery in domestic demand. In particular, given that the path of exports and overall economic growth beyond next year may vary depending on trade negotiations, not only between Korea and the U.S. but also between the U.S. and China, we will closely examine the outcomes and potential impacts of these negotiations before providing a specific forecast for the growth rate in November.

Inflation remained on a stable path in September, with consumer price inflation and core inflation (excluding changes in food and energy prices from the CPI) recording 2.1% and 2.0%, respectively. Short-term inflation expectations among the general public fell slightly to 2.5% in September from 2.6% the previous month. Going forward, despite upward pressure from the Korean won to U.S. dollar exchange rate, inflation is projected to remain at around 2% due to subdued demand-side pressure and the stabilization of global oil prices. Consequently, both headline and core inflation for this year and next year are expected to align with previous forecasts.

Financial and foreign exchange markets have remained generally stable, but volatility in the exchange rate and the interest rate has increased somewhat since late September. The Korean won-dollar exchange rate has risen to the low 1,400 won range, influenced by residents’ continued demand for overseas investment funds and concerns over tariff negotiations with the U.S., as well as renewed trade tensions between the U.S. and China. Korean Treasury bond yields fluctuated within a narrow range and then rose due to heightened vigilance over financial stability. Stock prices have risen sharply on prospects for favorable semiconductor industry conditions and on expectations for regulatory reforms in the capital market.

Looking at the housing market and the household debt situation, household loan growth in the financial sector decreased substantially in September, influenced by the government’s macroprudential policies. However, housing price increases and transaction volumes have accelerated again in Seoul and its surrounding areas since September. As the government has introduced follow-up real estate market stabilization measures in response, it is necessary to closely monitor their impacts.

Lastly, I will explain the background to the Base Rate decision, which reflects the abovementioned domestic and external conditions. With inflation remaining stable, economic growth, while there is still high uncertainty regarding economic growth outlook, has continued its improvement trend, mainly driven by consumption and exports. Also, it is necessary to further monitor financial stability conditions, such as the effects of real estate market stabilization measures on housing markets in Seoul and its surrounding areas and on household debt, as well as exchange rate volatility. The Board, therefore, judged that it is appropriate to maintain the current level of the Base Rate. One member, Shin Sung Hwan, voted against the decision to leave the Base Rate unchanged, proposing to lower it by 25 basis points.

To explain our decision in more detail, first and foremost, given that the domestic economy continues to improve while both upside and downside risks remain for the future growth path, it is deemed appropriate to determine the timing of any further cuts in the Base Rate after more closely assessing developments in various risk factors. In particular, the outcomes of Korea-U.S. and U.S-China trade negotiations, which are expected to take shape around next week’s APEC meetings, are likely to be the most important factors in gauging the future growth trend. It was also viewed as necessary to closely monitor the result of the U.S. Federal Reserve’s October FOMC meeting as well as the pace and duration of the developments in the semiconductor industry in order to reassess the growth outlook beyond next year. Next, from the perspective of financial stability, the housing market in Seoul and its surrounding areas has shown renewed signs of overheating, prompting the government to announce follow-up real estate market stabilization measures. It is judged that monetary policy should also be managed so as not to stimulate expectations for further increases in housing prices. In addition, as exchange rate volatility has also increased sharply within a short period of time, the Board judged that attention should be paid to its possible impact on financial stability. Lastly, while the increase in the exchange rate could exert upward pressure on inflation, demand-side pressures remain subdued and global oil prices are stable, so the overall stable trend is expected to continue. The Board thus judged that it is appropriate to maintain the current level of the Base Rate and to evaluate the changes in domestic and external policy conditions.

Regarding future monetary policy, the Board considers it is necessary to continue its rate cut stance, in the view of prevailing economic conditions. However, given that risks to the growth outlook have increased in both upside and downside, and financial stability risks have also heightened, the Board will determine the timing and the size of any further cuts in the Base Rate based on incoming economic data.

Producer Price Index - September 2025(preliminary)

Wed, 22 Oct 2025 06:00:00 +0900

□ The Producer Price Index increased by 0.4% month-on-month in September 2025 ―in year-on-year terms it increased by 1.2%.

□ The month-on-month changes in the major sub-indices are as follows:

o Agricultural, forestry & marine products: 0.4%

o Manufacturing products: 0.2%

o Electric power, gas, water & waste: 1.1%

o Services: 0.4%

* Please refer to the attached files for further details.

Press Releases | The Bank of Korea

Interest Rates (Mar 2026)

Business Survey and Economic Sentiment Index (ESI) for April 2026

Real Gross Domestic Product: First Quarter of 2026 (Advance Estimate)

Consumer Tendency Survey for April 2026

Producer Price Index - March 2026(preliminary)

Loan Officer Survey on Financial Institution Lending(Developments in Q1 2026 and Outlook for Q2 2026)

Inauguration of Bank of Korea Governor

The Bank of Korea Governor, Shin Hyun Song, was inaugurated on April 21, 2026. * Please refer to the attached file for the inaugural address.

Trade Settlement Currency in Korea 2025

Monetary and Liquidity Aggregates (February 2026)

Export/Import Price Indexes and Trade Indexes - March 2026(preliminary)

Recent Economic Developments (April 2026)

★Monetary Policy Decision & Opening Remarks to the Press Conference(April 10, 2026)

Flow of Funds during 2025(preliminary)

Financial Market Trends in March 2026

Balance of Payments during February 2026 (preliminary)

Official Foreign Reserves(March 2026)

Financial Authorities Finalize the Benchmark Rate Reform Plan

Bank of Korea Extends Operating Hours of BOK-Wire+

Interest Rates (Feb 2026)

Business Survey and Economic Sentiment Index (ESI) for March 2026

Consumer Tendency Survey for March 2026

Producer Price Index - February 2026(preliminary)

Export/Import Price Indexes and Trade Indexes - February 2026(preliminary)

Monetary and Liquidity Aggregates (January 2026)

Financial Market Trends in February 2026

Gross National Income: Fourth Quarter and Annual 2025 (Preliminary)

Bank of Korea and the Swiss National Bank Renewed their Bilateral Currency Swap Agreement

Industrial Loans of Depository Corporations during Q4 2025

Balance of Payments during January 2026 (preliminary)

Official Foreign Reserves(February 2026)

Interest Rates (Jan 2026)

Economic Outlook (February 2026)

★Monetary Policy Decision & Opening Remarks to the Press Conference(February 26, 2026)

International Investment Position(2025)

Business Survey and Economic Sentiment Index (ESI) for February 2026

Borrower-Level Household Debt Statistics in Q4 2025

Producer Price Index - January 2026(preliminary)

Consumer Tendency Survey for February 2026

Household Credits in Q4 2025

Monetary and Liquidity Aggregates (December 2025)

Export/Import Price Indexes and Trade Indexes - January 2026(preliminary)

Financial Market Trends in January 2026

Balance of Payments during December 2025 (preliminary)

Bank of Korea and Bank Indonesia Signed a Renewal of Bilateral Currency Swap Arrangement

BI and BOK Continue Cooperation on Korea–Indonesia Cross-Border QR Payment Interlinkage

Official Foreign Reserves(January 2026)

Interest Rates (Dec 2025)

Business Survey and Economic Sentiment Index (ESI) for January 2026

Consumer Tendency Survey for January 2026

Real Gross Domestic Product: Fourth Quarter and Annual 2025 (Advance Estimate)

Producer Price Index - December 2025(preliminary)

Loan Officer Survey on Financial Institution Lending(Developments in Q4 2025 and Outlook for Q1 2026)

Recent Economic Developments (January 2026)

★Monetary Policy Decision & Opening Remarks to the Press Conference(January 15, 2026)

Financial Market Trends in December 2025

Monetary and Liquidity Aggregates (November 2025)

Export/Import Price Indexes and Trade Indexes - December 2025(preliminary)

Balance of Payments during November 2025 (preliminary)

Flow of Funds during the 3rd quarter of 2025(preliminary)

Official Foreign Reserves(December 2025)

Comprehensive Revision of Monetary and Liquidity Aggregates

Business Survey and Economic Sentiment Index (ESI) for December 2025

Interest Rates (Nov 2025)

Monetary Policy for 2026

Consumer Tendency Survey for December 2025

Compilation Results of Borrower-Level Household Debt Statistics

Producer Price Index - November 2025(preliminary)

Financial Statement Analysis for Q3 2025

Monetary and Liquidity Aggregates (October 2025)

Statistics Release Schedule for 2026

Export/Import Price Indexes and Trade Indexes - November 2025(preliminary)

Financial Market Trends in November 2025

Industrial Loans of Depository Corporations during Q3 2025

Balance of Payments during October 2025 (preliminary)

Gross National Income: Third Quarter of 2025 (Preliminary)

Official Foreign Reserves(November 2025)

Economic Outlook (November 2025)

★Monetary Policy Decision & Opening Remarks to the Press Conference(November 27, 2025)

The Bank of Korea Governor, Shin Hyun Song, was inaugurated on April 21, 2026.

* Please refer to the attached file for the inaugural address.