Key View

• Elevated energy import prices over the past two years are placing upward pressures on electricity prices in South Korea, and we expect the cost of electricity to remain elevated for the coming quarters.
• While the increase in electricity prices was a result of the market's strong reliance on fossil fuels, we believe that it will do

Key View

• On August 24, the Bank of Korea (BoK) left its policy rate on hold at 3.50% for the fifth consecutive meeting, as we and the consensus had expected.
• The Bank expects a renewed rise in inflation but with economic growth and inflation having slowed sharply, we expect it to remain on hold for the rest of 2023.
• We expect the Bank to

Key View

• We view the increased occurrence of peaceful demonstrations and slow reform progress as challenges to social stability and policymaking in South Korea.
•  However, the country’s improved inflationary backdrop and resilient labour market will help keep social stability risks low.
• Overall, we have raised our Short-Term Political Risk

Key View

• The combination of continued government support for electric vehicle adoption, improved supply of new vehicles and the delayed vehicle orders from 2021 and 2022 will drive South Korea's vehicle sales to rebound in 2023.
• South Korea's relatively resilient economy will offer a stable footing for local vehicle sales over H223 as the

Key View

• We think the recent improvement in South Korean President Yoon Suk Yeol’s approval rating will modestly boost the prospects for difficult reforms such as those to the labour market and pension system.
• While parts of the macroeconomic backdrop appear to be improving, Yoon’s administration will need to deal with a slowing economy and

Key View

• Food spending as a share of total household spending in South Korea will remain relatively stable over the 20-year period from 2007 to 2027, at 11.6% of total household spending in 2027 compared to 10.2% in 2007. Despite little changes to the proportional spending on food, there has been a significant shift in dietary habits and food

Key View

• Successive rounds of refinery expansion and upgrading have transformed South Korea’s refining industry into a key source of high-quality transport fuels.
• South Korean refiners have been deepening refining and petrochemical integration to increase the industry’s competitiveness and capture maximum values from refinery production.
• Ref

Key View

• South Korea’s plans to expand the share of nuclear in its long-term power generation could pose downside risks to long term LNG demand.
• Demand-side fundamentals in LNG import market remain strong supported by conversion of coal-fired power plants and sustained strength in imports.
• A key implication of the new policy will be

Key View

• Multinational pharmaceutical firms in South Korea will face growing competition from local drugmakers in the branded prescription medicines segment of the country's pharmaceutical market.
• Clear commercial rewards and government support will drive local drugmaker strategies.
• Greater investments into R&D by domestic drugmakers will