BOK Key Rate Steady as Rhee Warns KRW is Far Undervalued
The Bank of Korea held interest rates steady as Governor Rhee Chang-yong warned the Korean won is significantly undervalued. KOSPI hits 4,700 amid political drama.
The Korean won is far too cheap, according to the nation's top banker. Bank of Korea (BOK) Governor Rhee Chang-yong says current exchange levels are "hard to justify" against the country's economic fundamentals.
BOK Key Rate Steady Amid KRW Undervaluation
The BOK once again held its key interest rate steady, prioritizing currency stability over aggressive stimulus. During a press briefing on January 15, 2026, Governor Rhee emphasized that the won't's recent depreciation doesn't align with South Korea's actual fiscal health. The central bank's decision suggests a "prolonged pause" as they wait for global markets and domestic political dust to settle.
Market Resilience vs. Political Instability
Despite the currency woes, the equity market showed surprising strength. The KOSPI rose above the 4,700-point line, signaling investor confidence in corporate earnings. However, a shadow remains: the legal trial of President Yoon Suk-yeol following his martial law declaration. Prosecutors have demanded the death penalty, and a final ruling is set for February 19.
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