The governor of the Bank of Korea has been saying that he will continue to raise interest rates,
and the market had already priced it in.
Of course, a freeze was slightly dominant today, but it did go up.
One of the reasons for this increase is the increase in the economic growth rate.
https://www.seoul.co.kr/news/economy/finance/2026/08/27/20260827500038
It rose from 2.6% to 3.3%, and my personal opinion is that even if interest rates are raised, the market will be somewhat cushioned...
In 2022 and 2023, we should have tightened through interest rate hikes, but we didn't raise interest rates. It was homework that had been postponed.
At the time, the economic growth rate wasn't good either, but we did reduce the interest rate gap with the US by raising interest rates at least twice.
We are only now doing this postponed homework. Today was a good market atmosphere and it seemed like it had been preemptively priced in, but foreign investors have switched to selling macros.
As always, when a crisis is resolved, the market rises again... The market always adapts to its environment.
The lower end of the exchange rate channel has now fallen below. It could go down to the early 1300 won range or even lower... Of course, this is assuming that the US does not raise interest rates in September.
Personally, I bought gold and hedged a bit... As the exchange rate falls, I wonder if I bought it for nothing. These days, the market seems to have a lot of turning points.
▶ Original source: https://www.seoul.co.kr/news/economy/finance/2026/08/27/20260827500038
