The Bank of Korea (BOK) has maintained its key interest rate at 3.5% for the seventh consecutive time amid concerns over global economic slowdown and ongoing geopolitical risks. This decision follows a series of rate freezes since February and succeeds seven consecutive hikes from April 2022 to Jan. 2023. While maintaining the current year’s growth estimate at 1.4%, the BOK lowered its 2024 growth projection to 2.1% from 2.2% and increased the inflation forecast for the next year to 2.6% from 2.4%.

The South Korean economy faces challenges from declining exports and weak consumer spending. Despite a recent rebound