{"id":2206119,"date":"2024-08-12T08:00:58","date_gmt":"2024-08-11T23:00:58","guid":{"rendered":"https:\/\/koreapro.org\/?p=2206119"},"modified":"2024-08-12T00:48:49","modified_gmt":"2024-08-11T15:48:49","slug":"bank-of-korea-faces-policy-dilemma-amid-global-economic-uncertainties","status":"publish","type":"post","link":"https:\/\/koreapro.org\/2024\/08\/bank-of-korea-faces-policy-dilemma-amid-global-economic-uncertainties\/","title":{"rendered":"Bank of Korea faces policy dilemma amid global economic uncertainties"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">The Bank of Korea (BOK) <\/span><a href=\"https:\/\/www.bok.or.kr\/portal\/bbs\/B0000502\/view.do?nttId=10086358&amp;searchCnd=1&amp;searchKwd=&amp;depth2=200038&amp;depth3=201263&amp;depth=201263&amp;pageUnit=10&amp;pageIndex=1&amp;programType=newsData&amp;menuNo=201265&amp;oldMenuNo=201263\"><span style=\"font-weight: 400;\">reported<\/span><\/a><span style=\"font-weight: 400;\"> that the South Korean won remained stable against the U.S. dollar in July, while foreign investment in domestic securities continued to show net inflows. The central bank\u2019s data revealed that the USD\/KRW exchange rate stood at 1,376.8 won per dollar on Aug. 7, virtually unchanged from the end of June. Foreign investors injected $2.24 billion into South Korean securities in July, marking the ninth consecutive month of net inflows.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Global financial markets experienced declines in government bond yields and stock prices amid concerns over the U.S. economic slowdown and the Bank of Japan\u2019s (BOJ) <\/span><a href=\"https:\/\/koreapro.org\/2024\/08\/south-korea-braces-for-economic-turbulence-following-japans-interest-rate-hike\/\"><span style=\"font-weight: 400;\">interest rate hike<\/span><\/a><span style=\"font-weight: 400;\">. The BOK noted that external borrowing conditions for domestic banks remained stable, with the 3-month USD\/KRW foreign exchange swap rate dropping 16 basis points to -2.23% since the end of June. The bank pledged to monitor market conditions closely, citing ongoing global economic uncertainties.<\/span><\/p>\n<p><b>WHY IT MATTERS<\/b><\/p>\n<p><span style=\"font-weight: 400;\">The BOK\u2019s report of stable financial indicators belies deeper structural issues in South Korea\u2019s economy. While foreign investment inflows continue, KOSPI\u2019s <\/span><a href=\"https:\/\/koreapro.org\/2024\/08\/south-koreas-stock-market-sinks-as-us-economic-woes-spark-global-sell-off\/\"><span style=\"font-weight: 400;\">record plunge<\/span><\/a><span style=\"font-weight: 400;\"> last week before its rebound highlights the market\u2019s vulnerability to external shocks. Additionally, the decline in government bond yields and stock prices in major countries signals growing global economic uncertainty that may impact South Korea\u2019s export-driven economy.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The decline in the USD\/KRW foreign exchange swap rate indicates that investors are anticipating lower interest rates in the future, likely driven by South Korea\u2019s weak domestic consumption and fears of a potential U.S. recession. The BOK may consider cutting its policy rate to support economic growth but doing so would risk currency depreciation, reigniting inflationary pressures.<\/span><\/p>\n<div class=\"content-tags\"><a href=\"https:\/\/koreapro.org\/tag\/business-economy\/\"><span class=\"tag\">Business &amp; Economy<\/span><\/a><\/div>","protected":false},"excerpt":{"rendered":"<p>The Bank of Korea (BOK) reported that the South Korean won remained stable against the U.S. dollar in July, while foreign investment in domestic securities continued to show net inflows. The central bank\u2019s data revealed that the USD\/KRW exchange rate stood at 1,376.8 won per dollar on Aug. 7, virtually unchanged from the end of [&hellip;]<\/p>\n","protected":false},"author":10407,"featured_media":2206006,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[30],"tags":[24],"class_list":["post-2206119","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-briefings","tag-business-economy"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v23.7 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Bank of Korea faces policy dilemma amid global economic uncertainties - KOREA PRO<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/koreapro.org\/2024\/08\/bank-of-korea-faces-policy-dilemma-amid-global-economic-uncertainties\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Bank of Korea faces policy dilemma amid global economic uncertainties - KOREA PRO\" \/>\n<meta property=\"og:description\" content=\"The Bank of Korea (BOK) reported that the South Korean won remained stable against the U.S. dollar in July, while foreign investment in domestic securities continued to show net inflows. The central bank\u2019s data revealed that the USD\/KRW exchange rate stood at 1,376.8 won per dollar on Aug. 7, virtually unchanged from the end of [&hellip;]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/koreapro.org\/2024\/08\/bank-of-korea-faces-policy-dilemma-amid-global-economic-uncertainties\/\" \/>\n<meta property=\"og:site_name\" content=\"KOREA PRO\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/nknewsorg\/\" \/>\n<meta property=\"article:published_time\" content=\"2024-08-11T23:00:58+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2024-08-11T15:48:49+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/koreapro.org\/wp-content\/uploads\/sites\/6\/2024\/08\/1.png\" \/>\n\t<meta property=\"og:image:width\" content=\"1870\" \/>\n\t<meta property=\"og:image:height\" content=\"1000\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/png\" \/>\n<meta name=\"author\" content=\"johnleenknews\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@southkoreapro\" \/>\n<meta name=\"twitter:site\" content=\"@southkoreapro\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"KOREA PRO\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"1 minute\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/koreapro.org\/2024\/08\/bank-of-korea-faces-policy-dilemma-amid-global-economic-uncertainties\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/koreapro.org\/2024\/08\/bank-of-korea-faces-policy-dilemma-amid-global-economic-uncertainties\/\"},\"author\":{\"name\":\"johnleenknews\",\"@id\":\"https:\/\/koreapro.org\/#\/schema\/person\/b9766dba611638edc06a6e0b7078714d\"},\"headline\":\"Bank of Korea faces policy dilemma amid global economic uncertainties\",\"datePublished\":\"2024-08-11T23:00:58+00:00\",\"dateModified\":\"2024-08-11T15:48:49+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/koreapro.org\/2024\/08\/bank-of-korea-faces-policy-dilemma-amid-global-economic-uncertainties\/\"},\"wordCount\":287,\"publisher\":{\"@id\":\"https:\/\/koreapro.org\/#organization\"},\"image\":{\"@id\":\"https:\/\/koreapro.org\/2024\/08\/bank-of-korea-faces-policy-dilemma-amid-global-economic-uncertainties\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/assets.korearisk.com\/uploads\/sites\/6\/2024\/08\/1.png\",\"keywords\":[\"Business &amp; Economy\"],\"articleSection\":[\"Briefings\"],\"inLanguage\":\"en-US\"},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/koreapro.org\/2024\/08\/bank-of-korea-faces-policy-dilemma-amid-global-economic-uncertainties\/\",\"url\":\"https:\/\/koreapro.org\/2024\/08\/bank-of-korea-faces-policy-dilemma-amid-global-economic-uncertainties\/\",\"name\":\"Bank of Korea faces policy dilemma amid global economic uncertainties - KOREA PRO\",\"isPartOf\":{\"@id\":\"https:\/\/koreapro.org\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/koreapro.org\/2024\/08\/bank-of-korea-faces-policy-dilemma-amid-global-economic-uncertainties\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/koreapro.org\/2024\/08\/bank-of-korea-faces-policy-dilemma-amid-global-economic-uncertainties\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/assets.korearisk.com\/uploads\/sites\/6\/2024\/08\/1.png\",\"datePublished\":\"2024-08-11T23:00:58+00:00\",\"dateModified\":\"2024-08-11T15:48:49+00:00\",\"breadcrumb\":{\"@id\":\"https:\/\/koreapro.org\/2024\/08\/bank-of-korea-faces-policy-dilemma-amid-global-economic-uncertainties\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/koreapro.org\/2024\/08\/bank-of-korea-faces-policy-dilemma-amid-global-economic-uncertainties\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/koreapro.org\/2024\/08\/bank-of-korea-faces-policy-dilemma-amid-global-economic-uncertainties\/#primaryimage\",\"url\":\"https:\/\/assets.korearisk.com\/uploads\/sites\/6\/2024\/08\/1.png\",\"contentUrl\":\"https:\/\/assets.korearisk.com\/uploads\/sites\/6\/2024\/08\/1.png\",\"width\":1870,\"height\":1000,\"caption\":\"Bank of Korea, July 26, 2024 | Image: Korea Pro\"},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/koreapro.org\/2024\/08\/bank-of-korea-faces-policy-dilemma-amid-global-economic-uncertainties\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/koreapro.org\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Bank of Korea faces policy dilemma amid global economic uncertainties\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/koreapro.org\/#website\",\"url\":\"https:\/\/koreapro.org\/\",\"name\":\"KOREA PRO\",\"description\":\"Be smart about South Korea. 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