Key View

• At Fitch Solutions, we think that the Bank of Korea’s decision in February to leave its key policy rate unchanged at 3.50% marks a pause, rather than an end, to the monetary tightening cycle.
• With central banks around the world likely to hike rates further still, we think that the Bank of Korea will eventually decide to hike rates by

Key View

• Apple will launch its mobile payments service, Apple Pay, in Korea via a partnership with Hyundai Card.
• At Fitch Solutions, we believe that mobile payments will remain popular in South Korea given the country’s high levels of technological innovation and 5G uptake.
• However, Apple Pay’s entrance into the South Korean market may face

Key View: Our 2023 outlook for South Korea’s arrivals from Japan is for arrivals to grow by 984.9% y-o-y in 2023, with arrivals reaching 837,540, increasing from 77,200 estimated for 2022. Arrivals in 2023 will remain below the pre-Covid (2019) arrivals of 3.2mn. We project South Korea’s arrivals from Japan to increase over the remainder of our

Key View

• The 0.4% q-o-q contraction in South Korea’s seasonally adjusted Q422 real GDP was sharper than most expected and brought 2022 growth to 2.6%.
• In 2023, global demand is likely to remain subdued, which will weigh on the external sector, while high household debt levels and elevated interest rates amid fiscal tightening will constrain

Key View

• The delay in the medicine approval review timeline will continue to increase in South Korea.
• South Korea will continue to enforce relevant laws and legislations to increase medicine accessibility and ensure that innovative products are appropriately valued.
• South Korea’s market attractiveness will remain strong despite concerns

Key View

• South Korea's gas-fired power generation will replace coal to be the dominant power type in the market's power mix in the middle of the decade, as momentum for the sector's growth strengthens.
• The incumbent Yoon administration is committed to increasing nuclear power’s share in the power mix, though we expect the realisation of such

Key View

• We at Fitch Solutions believe that South Korea faces increased risks of social instability, as inflation is set to remain elevated in 2023 and economic conditions worsen.
• President Yoon Suk-yeol’s decision to clamp down sternly on the latest strike by unionised cement truckers will ease current disruption, but risks being viewed as

Key View

• South Korean real GDP rose by 0.3% q-o-q in seasonally-adjusted terms in Q322, and the economy is likely to remain under pressure over the coming quarters.
• A slowdown in global growth alongside a downturn in the semiconductor industry bodes poorly for the export-oriented economy, while domestic activity will remain constrained by

Key View

• South Korea's vehicle production will come under increased pressure over the medium term (2023-2025) due to the localisation requirement for electric vehicles to qualify for incentives under the US's Inflation Reduction Act.
• We note that there is still upside risk to our forecast given the strong forecasted demand for EVs globally

Key View

• On August 25 2022, the Bank of Korea decided to hike its benchmark policy rate hike by 25bps to 2.50%, and we at Fitch Solutions continue to expect the base rate to reach 3.25% by end-2022, before being left on hold in 2023.
• Inflation is set to remain well above the central bank’s target of 2.0% over the coming months, and the South