The increase in interest rates in South Korea has caused violent fluctuations in the stock and foreign exchange markets.

On July 16, the Bank of Korea announced that it would raise the benchmark interest rate from 2.50% to 2.75%, an increase of 25 basis points, in order to control the rising prices caused by imported inflation. Because it is widely believed that South Korea is entering a cycle of interest rate hikes, this move has sparked intense volatility in the stock and foreign exchange markets.