In its monthly report of economic and financial issues, the Bank of Korea (BoK), the South Korean central bank, said “past monetary policy change in Japan had only limited impact on won.”

Additional takeaways

“Private consumption in 2023 likely to be weaker than expected.”

“Country's housing price decline faster than in other countries.”

“Domestic CP market recovery to become more pronounced going forward.”

“Domestic household debt falling without big credit event concern.“

Market reaction

At the time of writing, USD/KRW is trading modestly flat at around 1,232, having slipped from higher levels near 1,235.