The Bank of Korea (BoK) raised its base rate by 25 basis points to 3% at its August 2026 meeting, in line with market expectations, marking a second consecutive rate hike and the first back-to-back increases since early 2023. The decision reflected persistent inflation risks as stronger-than-expected economic growth and an unprecedented semiconductor boom fueled by global AI demand boosted the export-driven economy. Q2 gross domestic income surged 15.6% year-on-year, its strongest growth in more than 38 years, underscoring the economy’s robust momentum. In turn, the BoK raised its 2026 growth forecast to 3.3% from 2.6% previously and projected 2.9% growth in 2027. Meanwhile, inflation remained above the central bank’s 2% target, with consumer prices rising 2.8% in July and core inflation at 2.6%. The won’s recent strengthening also reduced pressure to delay tightening, while policymakers sought to contain persistent price pressures amid robust economic momentum. source: The Bank of Korea

The benchmark interest rate in South Korea was last recorded at 3 percent. Interest Rate in South Korea averaged 2.89 percent from 1999 until 2026, reaching an all time high of 5.25 percent in October of 2000 and a record low of 0.50 percent in May of 2020. This page provides - South Korea Interest Rate - actual values, historical data, forecast, chart, statistics, economic calendar and news. South Korea Interest Rate - data, historical chart, forecasts and calendar of releases - was last updated on September of 2026.

The benchmark interest rate in South Korea was last recorded at 3 percent. Interest Rate in South Korea is expected to be 3.00 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. In the long-term, the South Korea Interest Rate is projected to trend around 2.75 percent in 2027 and 2.25 percent in 2028, according to our econometric models.



Calendar GMT Reference Actual Previous Consensus TEForecast
2026-05-28 01:00 AM Interest Rate Decision 2.5% 2.5% 2.5% 2.5%
2026-07-16 01:00 AM Interest Rate Decision 2.75% 2.5% 2.75% 2.75%
2026-08-27 01:00 AM Interest Rate Decision 3% 2.75% 3% 3.0%
2026-10-22 01:00 AM Interest Rate Decision 3% 3.25%
2026-11-26 01:00 AM Interest Rate Decision 3.25%


Related Last Previous Unit Reference
Central Bank Balance Sheet 667897.10 601257.80 KRW Billion Jun 2026
Foreign Exchange Reserves 427900.00 427360.00 USD Million Jul 2026
Interbank Rate 3.18 3.16 percent Aug 2026
Interest Rate 3.00 2.75 percent Aug 2026
Lending Rate 3.00 3.00 percent Jul 2026
Loans to Private Sector 1494576.10 1487408.20 KRW Billion Jun 2026
Money Supply M0 204458000.00 205023100.00 KRW Million Jun 2026
Money Supply M1 1395935.10 1408950.60 KRW Billion Jun 2026
Money Supply M2 4209727.50 4186152.20 KRW Billion Jun 2026
Money Supply M3 6362415.20 6314401.00 KRW Billion Jun 2026


South Korea Interest Rate
In South Korea the interest rates decisions are taken by the Bank of Korea’s (BOK) Monetary Policy Committee. The official interest rate is the Bank of Korea Base Rate which was changed from overnight call rate on March 2008.
Actual Previous Highest Lowest Dates Unit Frequency
3.00 2.75 5.25 0.50 1999 - 2026 percent Daily

News Stream
Bank of Korea Delivers Second Straight Rate Hike
The Bank of Korea (BoK) raised its base rate by 25 basis points to 3% at its August 2026 meeting, in line with market expectations, marking a second consecutive rate hike and the first back-to-back increases since early 2023. The decision reflected persistent inflation risks as stronger-than-expected economic growth and an unprecedented semiconductor boom fueled by global AI demand boosted the export-driven economy. Q2 gross domestic income surged 15.6% year-on-year, its strongest growth in more than 38 years, underscoring the economy’s robust momentum. In turn, the BoK raised its 2026 growth forecast to 3.3% from 2.6% previously and projected 2.9% growth in 2027. Meanwhile, inflation remained above the central bank’s 2% target, with consumer prices rising 2.8% in July and core inflation at 2.6%. The won’s recent strengthening also reduced pressure to delay tightening, while policymakers sought to contain persistent price pressures amid robust economic momentum.
2026-08-27
Bank of Korea Delivers First Rate Hike in 3 Years
The Bank of Korea (BoK) raised its base rate by 25 basis points to 2.75% at its July 2026 meeting, in line with market expectations, and marking the first rate hike since January 2023. The decision reflected mounting inflationary pressures, with annual consumer inflation accelerating to 3.2% in June from 3.1% in May, remaining well above the central bank’s 2% target amid elevated oil prices and a weaker won. Policymakers also cited robust household credit growth, rising property prices, and persistent exchange rate pressures as factors warranting tighter monetary policy. At the same time, the BoK said concerns over economic weakness had eased amid a semiconductor export boom driven by AI demand and projected the economy to grow 2.6% in 2026. Governor Shin Hyun-song emphasized that restoring price stability had become the central bank’s priority despite the higher borrowing costs for households and businesses.
2026-07-16
South Korea Holds Key Rate Steady
The Bank of Korea (BoK) kept its policy rate unchanged at 2.5% at its May 2026 meeting, in line with expectations and marking the eighth consecutive hold, even as it remains in an easing cycle. The decision reflected policymakers’ cautious stance, as they balanced geopolitical risks against a softer won and a resurgence of inflation pressures. South Korea’s annual inflation rose to 2.6% in April, up from 2.2% in March and the highest since July 2024, underscoring the impact of higher oil prices. The central bank subsequently raised its inflation forecast for this year to 2.7%, up from 2.2% prior to the Middle East conflict, and expects it to ease to 2.3% in 2027. At the same time, policymakers lifted the 2026 growth outlook to 2.6% from 2%, citing a stronger export outlook driven by semiconductor strength, and projected GDP growth of 2.1% for 2027. The May meeting was also the first chaired by new Governor Shin Hyun-song, who took office last month.
2026-05-28