Inflation risks linger as the Deputy Governor of the Bank of Korea hints at possible further interest rate hikes.

The outgoing senior vice governor of the Bank of Korea, Ryoo Sangdai, stated that as strong economic growth pushes up the potential inflation rate, the central bank may need to raise interest rates further. However, he also pointed out that the recent strengthening of the won and the stock market trends have provided some flexibility for policymakers in shaping their decisions. In a press conference on Tuesday, he told reporters that the recent stabilization of the won, along with the decline in South Korea's benchmark stock index Kospi, "has given some leeway to members of the monetary policy committee, but I do not think this is a key factor." "The main concerns are whether core inflation will remain high in the future, whether the economy can maintain its growth momentum, and issues of financial stability."