Bank of Korea's Hawkish Rate Hike Lifts Won to 13-Month High; Governor Sets "Gradual" Tightening Tone

The Bank of Korea raised its benchmark interest rate by 25 basis points to 3.0%, pushing the won against the U.S. dollar to a 13-month high. The rate hike decision was supported by strong exports and AI-driven semiconductor demand. Governor Shin Hyun-song stated that further tightening is not ruled out, but the pace of policy adjustments will remain gradual to assess the actual impact of previous rate increases.