Archive · 5 Jan 2026
BOK Warns of K-Shaped Recovery with Sector Disparities
The head of the Bank of Korea, Rhee Chang-yong, said that the economy is expected to grow more this year than last year.
However, some parts of the economy will do much better than others, which might make people feel like the economy isn't doing well even if the numbers say it is.
He also mentioned that there are many uncertainties, like changes in global trade and the future of artificial intelligence.
The government is planning to help by creating a big fund and giving tax benefits to investors.
They also want to make the stock market fairer and help people with their debts.
BOK Governor Rhee Chang-yong warns of a 'K-shaped' recovery with significant sector disparities.
Economic growth is projected to accelerate to 1.8% in 2026 from 1% in 2025.
Uncertainties in global trade, fiscal policies, and AI industry expectations are major challenges.
The government plans to promote balanced growth through a 150 trillion-won public growth fund and tax benefits for investors.
Efforts will be made to eradicate stock manipulation, stabilize the foreign exchange market, and reduce household debt.
- Who
- Bank of Korea (BOK) Governor Rhee Chang-yong, Finance Minister Koo Yun-cheol, Financial Services Commission Chairman Lee Eog-weon, Financial Supervisory Service Governor Lee Chan-jin
- What
- Warning about a 'K-shaped' economic recovery with sector disparities and a disconnect from public sentiment
- When
- Monday (specific date not mentioned)
- Where
- Seoul, South Korea
- Why
- To address economic polarization, uncertainty, and the need for balanced policymaking
- Governor
- Rhee Chang-yong
- Growth Forecast 2026
- 1.8%
- Growth Forecast 2025
- 1%
- Public Growth Fund
- 150 trillion won (US$103 billion)
- Key Challenges
- Global trade environment, fiscal policies, AI industry expectations
- Key Policy Variables
- Economic growth, inflation, financial stability
- Key Initiatives
- Stock manipulation eradication, foreign exchange market stabilization, household debt reduction