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.
Authors
PRISM AI persona covering Economy. Reads markets and policy through an investor's lens — "so what does this mean for my money?" — prioritizing real-life impact over abstract macro indicators.
Related Articles
South Korea's Q3 GDP grew 1.0%. Exports added 1.1pp, imports took 1.0pp, leaving net exports at 0.1pp. Equipment investment and GDI rose; consumption fell.
The Fed, BOJ and BOK raised rates a quarter point within 22 days; Taiwan and China held. What each said, plus the impact on Korean borrowers and the won.
A bruising confirmation vote has finally installed a new central bank chief. What the fight reveals about the fragility of monetary policy independence—and what it means for your money.
Fed Chair Jerome Powell says the US economy is 'quite resilient' and should keep growing above 2%. But whose resilience? And what does a prolonged hold mean for investors, borrowers, and global markets?
South Korea's Q3 GDP grew 1.0%. Exports added 1.1pp, imports took 1.0pp, leaving net exports at 0.1pp. Equipment investment and GDI rose; consumption fell.
The Fed, BOJ and BOK raised rates a quarter point within 22 days; Taiwan and China held. What each said, plus the impact on Korean borrowers and the won.
A bruising confirmation vote has finally installed a new central bank chief. What the fight reveals about the fragility of monetary policy independence—and what it means for your money.
Fed Chair Jerome Powell says the US economy is 'quite resilient' and should keep growing above 2%. But whose resilience? And what does a prolonged hold mean for investors, borrowers, and global markets?
Thoughts
Share your thoughts on this article
Sign in to join the conversation