South Korea's new central bank Governor Rhee Chang-yong said on Monday, “rising US interest rates will lead to higher inflation in Korea via won.”

Additional quotes

If inflation rises, BOK should put pricing stability first.

Data must be used to inform policy decisions.

Housing market correction is inevitable.

Fed's Powell comments were in line with what we anticipated.

The time when China was the world's factory is coming to an end.

Market reaction

At the time of writing, USD/KRW is clinging on to Friday’s upside near 1,342, as investors get started on another eventful week ahead. Last Thursday, South Korea's central bank said that its Monetary Policy Board hiked the key rate to 2.50% from 2.25% as expected.