The Bank of Korea raised its benchmark seven-day repurchase rate by 25 basis points to 3.00% on Aug. 27, 2026, its second consecutive hike, with six of seven Monetary Policy Board members in favor and Hwang Geon-il dissenting for a hold at 2.75%. Governor Shin Hyun-song framed consecutive increases as a strong early signal to anchor expected inflation, ease capital-region housing and household-debt pressures and leave room for further won strength against elevated import prices. In the same outlook the bank raised 2026 real GDP growth to 3.3% from 2.6% and 2027 growth to 2.9% from 2.1%, attributing the upgrade mainly to stronger semiconductor and AI-related exports, mega-project investment and a limited Middle East shock. It lifted the 2026 current-account surplus forecast to a record $450 billion from $250 billion and the 2027 surplus to $430 billion from $190 billion, after a $123.1 billion surplus the prior year, and projected semiconductor export-volume growth in the late teens in 2026 following a 16% rise last year. Consumer-price inflation was held at 2.7% for 2026 and 2.3% for 2027, core inflation was raised, and equipment investment and private consumption forecasts were upgraded, but the projected increase in employment was cut to 140,000 from 180,000 as the bank, following the government, warned of jobless growth with sluggish hiring in construction and other vulnerable sectors.