The South Korean won appreciated to around 1,422 per dollar, its strongest level in four months, as investor confidence improved following the Bank of Korea’s latest policy decision. The central bank kept its benchmark interest rate unchanged at 2.5% for the sixth consecutive meeting, pointing to stronger-than-expected economic growth and the need to safeguard financial stability. Providing further support to the currency, the BOK raised its 2026 growth forecast to 2.0% from 1.8%, citing solid export performance and a recovery in private consumption.
In a separate move, the government tightened oversight of the tariff-rate quota system to prevent abuses, designating high-risk items for “intensive management” and requiring importers to demonstrate timely distribution in the domestic market. With around 100 products benefiting from more than KRW 1 trillion in annual tariff reductions, these measures are intended to reinforce price stability and strengthen investor confidence in South Korean assets.
