Mirae Asset Global Investments expects the Bank of Korea to raise interest rates
at least three times over the next year, with the policy rate potentially
reaching 3.5% by H2 2027 from 2.5% currently, according to executive management
director Choi Jinyoung. He said wealth from South Korea’s chip sector, including
bonuses and equity gains at Samsung Electronics Co. and SK Hynix Inc., will fuel
consumption and inflation. Choi also expects the 10-year sovereign yield to rise
above 4% within two months and maintains a bearish view on medium-term Korean
bonds. He cited strong AI-driven earnings growth, rising oil prices linked to
the Iran war, and faster-than-expected GDP growth above 3% as factors supporting
tighter monetary policy.
