20260828 Domestic Economic Issues

🗂Bank of Korea's Monetary Policy Committee Unexpectedly Raises Base Rate by 0.25%p (to 3.00%) The Bank of Korea's Monetary Policy Committee (MPC) made a surprise decision to raise the base interest rate from 2.75% to 3.00% (a 0.25%p increase) to stabilize exchange rate volatility and curb rising housing prices and household debt in the Seoul metropolitan area. This back-to-back rate hike further tightens the monetary policy stance in the domestic financial market. 🗂Semiconductor Stocks Like Samsung Electronics and SK Hynix Surge on Nvidia's Positive Outlook Following Nvidia's earnings surprise overnight, strong buying interest flowed into major domestic semiconductor stocks. The positive news from the rebound in US tech stocks largely offset the impact of the MPC's decision, which dampened expectations for an interest rate cut. 🗂Kosdaq Growth Stocks and Pharma/Bio Sectors Face Pressure from BOK Rate Hike The Bank of Korea's surprise rate hike put pressure on Kosdaq growth stocks, as well as the secondary battery, pharmaceutical, and bio sectors, which are sensitive to high-interest rate environments. Concerns over financing costs led to downward pressure, showing a clear divergence across sectors.