The Bank of Korea held the base rate at 3.00% per annum during the Monetary Policy Committee meeting on January 16. The market had anticipated a rate cut to stimulate the economy, but the recent surge in the exchange rate has made a rate cut difficult. In particular, following the emergency martial law incident on December 3 of last year, the won-dollar exchange rate has soared sharply, and with the inauguration of U.S. President Trump, the strong dollar trend may intensify further, which appears to have led the Bank of Korea to decide to hold rates steady.
