{"id":64863,"date":"2026-07-15T21:38:16","date_gmt":"2026-07-16T01:38:16","guid":{"rendered":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/bank-of-korea-hikes-rates-for-first-time-since-2023-amid-global-tech-rout\/64863\/"},"modified":"2026-07-15T21:38:16","modified_gmt":"2026-07-16T01:38:16","slug":"bank-of-korea-hikes-rates-for-first-time-since-2023-amid-global-tech-rout","status":"publish","type":"post","link":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/bank-of-korea-hikes-rates-for-first-time-since-2023-amid-global-tech-rout\/64863\/","title":{"rendered":"Bank of Korea Hikes Rates for First Time Since 2023 Amid Global Tech Rout"},"content":{"rendered":"<h2>Key Takeaways<\/h2>\n<ul>\n<li><strong>The Bank of Korea (BOK) raised its benchmark interest rate by 25 basis points to 2.75%<\/strong>, the first increase since January 2023, to combat headline inflation that reached <strong>3.2% in June<\/strong>.<\/li>\n<li><strong>South Korea\u2019s KOSPI index plummeted nearly 9%<\/strong>, breaking below the 7,000-point mark, as a massive sell-off in semiconductor heavyweights <strong>SK Hynix (<a href=\"\/stock\/000660\">000660<\/a>)<\/strong> and <strong>Samsung Electronics (<a href=\"\/stock\/005930\">005930<\/a>)<\/strong> triggered a broader market rout.<\/li>\n<li><strong>Geopolitical tensions in the Middle East<\/strong> have driven crude <a href=\"https:\/\/stockmarketwatch.com\/energy\/crude-oil\" data-internallinksmanager029f6b8e52c=\"12\" title=\"Crude oil\">oil prices<\/a> higher, with <strong>United Airlines (<a href=\"\/stock\/UAL\">UAL<\/a>)<\/strong> projecting an additional <strong>$6 billion in fuel costs<\/strong> this year due to disruptions in the Strait of Hormuz.<\/li>\n<li><strong>Tokyo Electron (<a href=\"\/stock\/8035\">8035<\/a>) announced an expanded collaboration with <a href=\"https:\/\/stockmarketwatch.com\/stock\/NVDA\" data-internallinksmanager029f6b8e52c=\"15\" title=\"stock: NVDA\">Nvidia<\/a> (<a href=\"\/stock\/NVDA\">NVDA<\/a>)<\/strong> to integrate &quot;Agentic AI&quot; and robotics into manufacturing, even as broader tech sentiment soured.<\/li>\n<li><strong>South Korean regulators are preparing emergency measures<\/strong> to curb volatility caused by <strong>single-stock leveraged ETFs<\/strong> following record losses for retail investors.<\/li>\n<\/ul>\n<p>The <strong>Bank of Korea (BOK)<\/strong> shifted to a tightening stance on Thursday, delivering its first interest rate hike in three and a half years. The central bank raised the seven-day repurchase rate to <strong>2.75%<\/strong>, citing persistent inflationary pressures and a sharp rise in <strong>household loans<\/strong>. Governor <strong>Shin Hyun-song<\/strong> warned that inflation is likely to remain above the <strong>2% target<\/strong> for a &quot;considerable period,&quot; exacerbated by rising energy costs and a chip-led export boom that has bolstered economic growth but fueled domestic price pressures.<\/p>\n<p>The rate decision coincided with a historic collapse in the Seoul stock market. The <strong>KOSPI<\/strong> fell <strong>8.95%<\/strong> to close at <strong>6,806.93<\/strong>, its sharpest decline in years. The rout was led by <strong>SK Hynix (<a href=\"\/stock\/000660\">000660<\/a>)<\/strong>, which saw its shares plunge more than <strong>15%<\/strong>\u2014the largest one-day drop since its 1996 listing. Investors moved to lock in profits following the company&#39;s recent <strong>Nasdaq ADR<\/strong> debut, while <strong>Samsung Electronics (<a href=\"\/stock\/005930\">005930<\/a>)<\/strong> also tumbled <strong>10.7%<\/strong>. <em>Analysts noted that the sell-off was intensified by forced liquidations of leveraged retail positions.<\/em><\/p>\n<p>In response to the market instability, South Korean President <strong>Lee Jae-myung<\/strong> ordered financial regulators to introduce safeguards for <strong>single-stock leveraged ETFs<\/strong>. These products, which track <strong>Samsung<\/strong> and <strong>SK Hynix<\/strong>, have been blamed for amplifying the KOSPI\u2019s volatility. The <strong>Financial Services Commission (FSC)<\/strong> is expected to announce measures shortly, which may include raising the minimum deposit requirement for retail investors from <strong>10 million won to 50 million won ($33,500)<\/strong>.<\/p>\n<p>Global energy markets remain on edge as <strong>U.S. CENTCOM<\/strong> confirmed a new wave of strikes against targets in <strong>Iran<\/strong>. The ongoing conflict has effectively closed the <strong>Strait of Hormuz<\/strong>, a critical chokepoint for 20% of the world&#39;s oil supply. <strong>United Airlines (<a href=\"\/stock\/UAL\">UAL<\/a>)<\/strong> warned on Wednesday that its fuel bill will swell by <strong>$6 billion<\/strong> this year, marking the second-highest cost for the carrier after labor. <em>The airline industry faces significant profit erosion as jet fuel prices outpace broader crude oil gains.<\/em><\/p>\n<p>Despite the tech sector&#39;s volatility, <strong>Tokyo Electron (<a href=\"\/stock\/8035\">8035<\/a>)<\/strong> and <strong><a href=\"https:\/\/stockmarketwatch.com\/stock\/NVDA\" data-internallinksmanager029f6b8e52c=\"15\" title=\"stock: NVDA\">Nvidia<\/a> (<a href=\"\/stock\/NVDA\">NVDA<\/a>)<\/strong> are deepening their ties. The companies announced a partnership to use the <strong><a href=\"https:\/\/stockmarketwatch.com\/stock\/NVDA\" data-internallinksmanager029f6b8e52c=\"15\" title=\"stock: NVDA\">Nvidia<\/a> Isaac<\/strong> robotics platform and <strong>Agent Toolkit<\/strong> to develop &quot;Agentic AI&quot; solutions for digital transformation in manufacturing. This collaboration aims to address Japan&#39;s labor shortages by deploying autonomous robots and AI-driven drug discovery platforms, even as investors remain cautious about the immediate sustainability of the AI infrastructure build-out.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Key Takeaways The Bank of Korea (BOK) raised its benchmark interest rate by 25 basis points to 2.75%, the first 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