Bank of Korea Governor Shin Hyun-song said Wednesday the central bank will make proactive efforts to tame inflation until convinced prices are clearly heading toward the target level.
Governor Shin Hyun-song made the remark during a press event, noting that consumer prices are expected to remain elevated for a significant period of time due to lingering effects from the Middle East conflict.
South Korea's consumer prices rose 3.1 percent in May from a year earlier, the fastest growth in 26 months. Shin said the recent wage increases in the technology sector, including massive bonuses at Samsung Electronics and SK Hynix, will gradually push up prices in other industries as well.
The Bank of Korea forecast consumer price inflation around 3 percent and core inflation in the mid-2 percent range for the second half of 2026. Shin ruled out a so-called big step of raising the key rate by 0.5 percentage points in one move under current conditions.
