World Economy/South Korea

🇰🇷

South Korea

KOR

Asia-Pacific • Sovereign Currency: KRW

Analyze South Korea with Schema AI

Nominal GDP

$1.76T

2024 Nominal

Annual GDP Growth

+1.5%

YoY Q3 2024 Advance YoY

Inflation (CPI)

1.3%

Oct 2024 YoY

Policy Rate

3.25%

Base Rate

10Y Sovereign Yield

3.08%

Korea 10Y Treasury Bond

Unemployment Rate

2.7%

Oct 2024 Seasonally Adjusted

Debt-to-GDP

55.2%

2024 National Debt Projection

Trade Balance

+$3.2B

Oct 2024 Trade Surplus

BLOOMBERG ECONOMICS MONETARY POLICY TRANSMISSION

🇰🇷BANK OF KOREA POLICY DASHBOARD

Target Instrument: Base Rate • Sovereign: South Korea (KOR)

STANCE: neutral

Next Meeting: 2026-11-28

LOOSER CONDITIONSIN LINE WITH TARGETTIGHTER CONDITIONS

STATUTORY BENCHMARK

2.75%Unchanged (0 bps)

Base Rate

REAL CARRY SPREAD (r - π)

+1.45%

Neutral Equilibrium

OVERNIGHT BENCHMARK (O/N)

N/A

Statutory money market fixing

YIELD CURVE SLOPE (10Y - r)

+0.33%

Normal Upward Slope

WAGES & PRICES2 METRICS

Headline CPI Inflation (YoY)Oct 2024 YoY

Subdued inflation pressure tracking below target baseline

Statistics Korea (KOSTAT)Ref

1.30%

IN LINE

Distance to Inflation Target (2.0%)Oct 2024 YoY

Inflation below 2% target anchor by 0.70 percentage points

Statistics Korea (KOSTAT)Ref

-0.70%

MILD LOOSE

SUPPLY & DEMAND2 METRICS

Annual Real GDP Growth RateQ3 2024 Advance YoY

Moderate real growth pace matching potential output

Bank of KoreaRef

1.50%

IN LINE

Unemployment Rate (Labor Slack)Oct 2024 Seasonally Adjusted

Tight labor market conditions with minimal civilian slack

Statistics KoreaRef

2.70%

LOOSER

FINANCIAL CONDITIONS4 METRICS

Base RateBase Rate

Official statutory policy target rate set by Bank of Korea

Bank of Korea (BOK)Ref

3.25%

LOOSER

Real Carry Rate (Policy - CPI)Calculated

Positive real return regime delivering restrictive monetary drag

Bank of Korea vs Statistics Korea (KOSTAT)

+1.45%

LOOSER

10-Year Sovereign Benchmark YieldKorea 10Y Treasury Bond

Long-term sovereign borrowing benchmark discounting term premium & inflation risk

Korea Financial Investment Association (KOFIA)Ref

3.08%

LOOSER

Yield Curve Slope (10Y - Policy Rate)Calculated

Upward-sloping normal term structure (+0.33%)

Sovereign Debt Desk vs Central Bank Target

+0.33%

LOOSER

EXTERNAL & FISCAL2 METRICS

Current Account / Trade BalanceOct 2024 Trade Surplus

Trade balance surplus reinforcing sovereign foreign exchange buffer

Ministry of Trade, Industry and Energy (MOTIE)Ref

+$3.2B

MILD LOOSE

General Government Debt / GDP2024 National Debt Projection

Fiscal debt load within statutory prudential headroom boundary

Ministry of Economy and Finance KoreaRef

55.20%

MILD LOOSE

HISTORICAL RATE DECISION TRAJECTORY (BASE RATE)

Verified Chronological Decisions

2026-10-09

2.75%

Policy Assessment Summary: Base policy interest rate for South Korea.

Key Domestic Equities & Capital Markets

Major corporate champions tracked in WOWS with sovereign economic exposure

Index: KOSPI Composite (KOSPI)

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