Bank of Korea Governor Shin warned authorities cannot fall behind the curve on inflation, signaling growing urgency to act. He said the ongoing Middle East conflict, including the Iran crisis, is lifting inflationary pressure by pushing up energy prices and disrupting supply chains. Shin added that the combined dynamics of growth, inflation and financial stability point toward a clear policy direction and policymakers must avoid acting too late if price stability is threatened. His comments are

Bank of Korea Governor Shin warned authorities cannot fall behind the curve on inflation, signaling growing urgency to act. He said the ongoing Middle East conflict, including the Iran crisis, is lifting inflationary pressure by pushing up energy prices and disrupting supply chains. Shin added that the combined dynamics of growth, inflation and financial stability point toward a clear policy direction and policymakers must avoid acting too late if price stability is threatened. His comments are likely to reinforce market expectations that the BOK could resume tightening as soon as next month. Even if cost-relief measures ease some pressure, South Korea’s inflation may remain above target for an extended period.