Stock Market Impact: The unchanged 2.5% policy rate is expected to maintain current market sentiment, though heightened geopolitical risk may trigger short‑term volatility.
Listed Companies and Sectors: The chipmaking sector, driving recent economic resilience, may continue to benefit; other sectors remain lagging.
Investment Flows: No specific measures affecting FDI/FPI were announced.
Interest Rates, Inflation, and Liquidity: Benchmark rate held at 2.5%; inflation has risen over the last two months but is constrained by government price‑control measures; BOK retains headroom for future hikes.
Fiscal or Monetary Policy: Governor Shin Hyun‑Song, appointed in April 2026, signalled a hawkish stance due to higher energy prices from the Iran‑related Middle East conflict; the central bank last cut rates in May 2025 and signalled an extended pause.
