The Bank of Korea warned the semiconductor boom could rekindle inflation if corporate and household income gains translate into consumption. It said rising semiconductor export prices have boosted purchasing power and that, if consumption accelerates, demand may exceed current supply capacity — a demand-side price pressure the central bank cited as one reason for its recent string of atypical consecutive rate hikes.

2026-08-31

The Bank of Korea warned the semiconductor boom could rekindle inflation if corporate and household income gains translate into consumption. It said rising semiconductor export prices have boosted purchasing power and that, if consumption accelerates, demand may exceed current supply capacity — a demand-side price pressure the central bank cited as one reason for its recent string of atypical consecutive rate hikes.