With a market capitalization of KRW23 trillion by H1 2022, Korea has been a hotspot for the virtual asset market due to lucrative returns on virtual asset trading, the so-called “Kimchi premium”.
As a highly open economy, Korea is sensitive to unexpected shifts in the U.S. monetary policy stance.
Key takeaways from the Bank of Korea and the Riksbank's pilot projects.
During 2022, the Korean won (KRW) exchange rate was highly volatile as the U.S. economy emerged from the pandemic and the U.S. dollar (USD) strengthened following the hawkish policy stance of the U.S. Federal Reserve.
The Korean economy has recovered strongly from the pandemic, led by robust export growth and a strong rebound in private consumption. However, inflation remains elevated and the economic outlook in the near term has deteriorated amid tighter financial conditions and weakening external demand.
Watch the highlights of AMRO’s 2022 Annual Consultation Report on Korea. The Korean economy is forecast to moderate to 1.7 percent in 2023. The economic outlook in the near term…
The Korean economy has recovered strongly from the pandemic, led by robust export growth and a strong rebound in private consumption.
This paper quantifies the likelihood of spillovers to emerging ASEAN-4 economies and Korea from shifts in US monetary policy.
The Korean economy has recovered strongly since 2021, reflecting a high vaccination rate, strong policy stimuli, and a rebound in manufacturing.
Consumer price inflation in Korea had been persistently low since the 2008 Global Financial Crisis, before picking up over the last six months. Until early this year, inflation has remained below the Bank of Korea’s target rate of 2 percent despite the central bank’s accommodative monetary policy stance since 2012.