As nations across the globe grapple with soaring inflation, South Korea finds itself in an anomalous economic situation. 

While inflation hit a 14-month low of 3.7%, far below the dizzying 9.1% seen in the U.S. last June or the U.K.’s 10.1%, Seoul has still had to respond to a worldwide monetary tightening cycle by raising interest rates. And this decision has delivered a blow to South Korea’s vibrant startup scene.