BANGKOK — On Thursday, July 16th, 2026, South Korea's central bank raised its key interest rate for the first time in more than three years. This move aims to address inflationary pressures that have emerged partly due to accelerating economic growth concentrated in the semiconductor industry.

The economic boom, especially among chipmakers like SK Hynix, has contributed to inflation concerns prompting the central bank's decision. This rate hike reflects efforts to balance growth with inflation control amid a dynamic economic environment influenced by AI-driven chip demand.

Meanwhile, China's GDP growth rate has slowed to 4.3%, marking its slowest pace in over three years, contrasting with South Korea's robust economic activity.

Sources