Lee Changyong: "Market Retreat on Rate Cut Speed and Scale Is Reasonable"... Semiconductor Boom Leads to Upward Revision of Current Account Outlook (Comprehensive Report 2)

Lee Changyong, Governor of the Bank of Korea, described the market's retreating expectations for the speed and scale of base rate cuts as a "reasonable judgment." Recently, more market participants have voiced the opinion that additional rate cuts may be delayed from the first half to the second half of next year. At a press conference following the Monetary Policy Committee meeting to decide the direction of monetary policy on the 23rd, Governor Lee stated, "The fact that the number of committee members open to a rate cut within the next three months has decreased from five in August to four this time reflects a greater focus on financial stability." He added, "While the overall direction remains toward rate cuts, it seems correct to say that both the timing and scale of cuts have been adjusted." Regarding the possibility of a rate cut at the final Monetary Policy Committee meeting of the year, he said it was difficult to give a definitive answer due to numerous variables in November.

Trends

10.23 15:24

"Last-Minute Rush"…Seoul Weekly Apartment Prices See Sharpest Increase [Real Estate AtoZ]

Apartment prices in Seoul have recorded the sharpest weekly increase since related statistics began being compiled in 2012. Analysts attribute this to a surge in last-minute demand ahead of new government measures, which will soon classify all of Seoul and neighboring Gyeonggi Province municipalities as regulated areas. According to weekly apartment price trend data released by the Korea Real Estate Board on October 23, apartment prices in Seoul rose by 0.50% in the third week of October compared to the previous week. The previously announced increase was 0.54%, but that figure covered a two-week cumulative period due to the Chuseok holiday. Public institutions have been releasing weekly apartment price trend data since May 2012. This upward trend surpasses even the heated market conditions of September 2018. At that time, despite government measures such as increased capital gains taxes for owners of multiple homes, few properties were put on the market. Instead, the government's str

Trends

10.23 14:00

Bank of Korea Freezes Rates in October... Next Cut Hinges on Housing Prices and Exchange Rate Trends (Comprehensive)

On October 23, the Monetary Policy Committee of the Bank of Korea decided to keep the base interest rate unchanged at 2.50% per annum. This decision, which places greater emphasis on financial stability, comes right after the announcement of the October 15 real estate measures aimed at curbing the surging housing prices in Seoul, as well as amid growing exchange rate volatility due to uncertainties surrounding the 350 billion US dollar investment in the United States. The Bank of Korea plans to maintain the current rate this month while assessing the effects of the October 15 measures and monitoring the progress of Korea-China and Korea-US tariff negotiations around the Asia-Pacific Economic Cooperation (APEC) summit. Housing Prices and Transaction Volume Must Stabilize... Need to Confirm the Effects of the October 15 MeasuresThe Monetary Policy Committee announced at its policy meeting held at the Bank of Korea headquarters in Jung-gu, Seoul, that the base interest rate will remain at

Trends

10.23 11:04

Bank of Korea Freezes Base Rate in October... Surging Home Prices and Exchange Rate Volatility Put Financial Stability First (Update)

On the 23rd, the Monetary Policy Committee of the Bank of Korea decided to keep the base interest rate unchanged at 2.50% per annum. This decision came immediately after the announcement of the October 15 Real Estate Measures, which were introduced to cool down the surging housing prices in Seoul. Additionally, increased uncertainty surrounding the 350 billion dollar investment in the United States has heightened concerns over exchange rate volatility, prompting the central bank to prioritize financial stability. The Bank of Korea plans to maintain the current rate this month to assess the effectiveness of the October 15 measures, while also closely monitoring developments in Korea-China and Korea-US tariff negotiations around the Asia-Pacific Economic Cooperation (APEC) summit. The Monetary Policy Committee announced at the monetary policy direction meeting held at the Bank of Korea headquarters in Jung-gu, Seoul, that it would keep the base rate at 2.50% per annum. This marks the th

Trends

10.23 09:55

Bank Mortgage Loans Up 2.5 Trillion Won in September, Growth Slows... "Further Expansion Possible by Year-End"

Last month, the increase in household loans from banks slowed significantly, with the total increase amounting to only 2 trillion won. The total increase in household loans across the entire financial sector was also limited to around 1.1 trillion won. This was due to the continued impact of the June 27 Measures, as well as a seasonal decline in demand for jeonse funds. However, the expansion of transaction volumes in some parts of the Seoul metropolitan area’s real estate market, which has overheated since September, is expected to affect the scale of household loan growth toward the end of the year, with a lag of two to three months. According to the "Financial Market Trends for September 2025" released by the Bank of Korea on the 16th, the outstanding balance of household loans from banks at the end of last month stood at 1,170.2 trillion won, an increase of 2 trillion won compared to the end of the previous month. This increase is significantly smaller than the previous month’s 4.

Trends

10.16 12:00

Home Prices Rose Further After September 7 Policy... "Need to Strengthen Macroprudential Policies"

Despite the government’s repeated announcements of measures to cool down the real estate market, housing purchase sentiment?especially in Seoul?remains strong. After the September 7 measures, which focused on expanding housing supply, Seoul’s housing price growth rate actually increased compared to May, when the average price growth was similar, and the number of districts experiencing price increases also expanded. The Bank of Korea emphasized that it is necessary to continue strengthening macroprudential policies to manage expectations in the housing market. Seoul Apartment Prices Rose 0.1% Ten Weeks After the June 27 Measures... Minimal Impact Compared to Past PoliciesIn its “September 2025 Financial Stability Review” released on September 25, the Bank of Korea examined trends in metropolitan housing prices and household debt following the government’s announcement of strengthened household debt management measures on June 27 and the additional housing supply and loan demand managem

Trends

09.25 11:00

Extension of Eased Financial Regulations for Real Estate PF... PF Exposure Down 4.1 Trillion Won from Previous Quarter as of End-June

The financial authorities will extend the temporary easing of financial regulations for financial companies, implemented to facilitate the resolution and restructuring of real estate project financing (PF), until the end of this year. They also plan to introduce institutional improvements within the year to manage soundness based on the capital adequacy ratio of PF project sites. On September 25, the Financial Services Commission, Financial Supervisory Service, Ministry of Economy and Finance, Ministry of Land, Infrastructure and Transport, and other related agencies held a written 'Real Estate PF Status Review Meeting' at the Korea Federation of Banks in Jung-gu, Seoul. They discussed the current status of PF loan delinquency rates in the financial sector, results and future plans for business feasibility assessments, plans to extend temporary regulatory relief measures related to real estate PF, and directions for improving the soundness system for real estate PF. As of the end of Ju

Trends

09.25 10:21

Gangnam Apartment Prices Reach Levels of Singapore, Where Per Capita GDP Is Twice as High

After five consecutive weeks of slowing growth following the June 27 loan regulation announcement, the rate of increase in Seoul apartment prices rebounded in the first week of August. According to the Korea Real Estate Board, Seoul apartment prices rose by 0.14% in the first week of this month, with the rate of increase expanding by 0.02 percentage points compared to the previous week. However, there are claims that further price increases may be limited, as apartment prices in Gangnam, Seoul, have reached a level comparable to Singapore, a city-state with a per capita GDP twice that of Seoul. 'Smart One Unit' Soared Over the Past YearOn August 10, BNK Investment & Securities published a report titled "Debate: Focus on Tariffs, Interest Rate Cuts, and Real Estate," analyzing that over the past decade, the rate of increase in Seoul apartment prices has been relatively high compared to cities with similar residential types such as Singapore and Hong Kong. The report also noted that apar

Trends

08.11 08:00

One Month After the 10·15 Measures: Transactions Plummet, Listings Dry Up, but Yongsan and Seocho Surge [Real Estate AtoZ]

Lee Changyong: "Market Retreat on Rate Cut Speed and Scale Is Reasonable"... Semiconductor Boom Leads to Upward Revision of Current Account Outlook (Comprehensive Report 2)

"Last-Minute Rush"…Seoul Weekly Apartment Prices See Sharpest Increase [Real Estate AtoZ]

Bank of Korea Freezes Rates in October... Next Cut Hinges on Housing Prices and Exchange Rate Trends (Comprehensive)

Bank of Korea Freezes Base Rate in October... Surging Home Prices and Exchange Rate Volatility Put Financial Stability First (Update)

Bank Mortgage Loans Up 2.5 Trillion Won in September, Growth Slows... "Further Expansion Possible by Year-End"

Home Prices Rose Further After September 7 Policy... "Need to Strengthen Macroprudential Policies"

Extension of Eased Financial Regulations for Real Estate PF... PF Exposure Down 4.1 Trillion Won from Previous Quarter as of End-June

Gangnam Apartment Prices Reach Levels of Singapore, Where Per Capita GDP Is Twice as High

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