Bank of Korea Chief Sees Inflation Near 2%, Flags FX Volatility

Bank of Korea Governor Rhee Chang-yong told a parliamentary subcommittee that the central bank expects consumer-price growth to remain close to the 2% level in the coming months, reinforcing its view that inflation pressures are largely contained. Rhee said South Korea’s economy should maintain its recovery through the second half of 2025, but he cautioned that the foreign-exchange market is experiencing “high volatility,” which the bank will monitor alongside economic and price trends when determining future policy moves. The governor added that residential property values remain elevated in some districts of Seoul, suggesting pockets of financial-stability risk even as broader inflation moderates.