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 managing 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 mont

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 managing 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.