A Bank of Korea official, Soohyung Lee, indicated that South Korea’s political turmoil may stabilize within six months, similar to past impeachments, but warned about external pressures, particularly potential U.S. tariffs on exports. These tariffs could harm South Korea’s economy and possibly increase inflation in the U.S., maintaining high interest rates that affect the Korean won. The won is near 15-year lows, and the Bank of Korea lacks a specific forex target but can manage volatility. The country’s GDP growth is forecasted to slow to 1.8% in 2025, with inflation concerns prioritized over growth.
