South Korea's central bank raises interest rates for the first time in three and a half years: the policy shift is driven by the wave of AI chip hotspots, officially marking the start of a tightening cycle.

According to the Securities Times app, on July 16, the Bank of Korea raised its policy rate by 25 basis points from 2.50% to 2.75%, marking the first rate hike since January 2023, in line with market expectations. This move signals the official end of a four-round rate-cutting cycle since the end of 2024, and a new tightening cycle begins. After the rate hike decision was announced, the Korean stock market experienced severe turbulence. As of the time of writing, the KOSPI index plummeted by more than 6%, a 26% decline from its historical high in June, officially entering a bear market. Blue-chip stocks were sold off across the boardSK Hynix fell by over 11%, Samsung Electronics by over 8%. The "sell-the-fact" trend in the semiconductor sector and the direct impact of rate hikes on leveraged stock market investments combined, triggering a sharp market correction.