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.

Given the speed at which the Federal Reserve and other major central banks are raising interest rates to counter inflation, South Korea found it necessary to follow suit.