South Korean bank stocks rose on the 14th even as the KOSPI fell 2.72%, with investors betting that prolonged rate increases in South Korea and the United States will improve banks' net interest margins and interest income. Woori Financial Group gained 4.56% to 36,700 won by 1:35 p.m., while JB Financial Group rose 3.31%, Hana Financial Group 2.69% and other major lenders also advanced. Expectations for a U.S. rate increase strengthened after August core consumer prices rose 0.3% month on month, above the 0.2% forecast, lifting the rate-futures probability of a 0.25 percentage point hike to about 86% from 69%. Analysts expect the effect of South Korea's successive rate increases to become more visible in bank earnings from the fourth quarter, as lending rates rise with a lag and banks restrict loan supply. Korean bank stocks trade at an average forward PBR of 0.88 times, estimated to decline to 0.83 times by the end of next year. The move extends an earlier rally in which the KRX Bank Index gained 14.5% from late June through September 11, although analysts continue to warn that higher funding costs, borrower stress and credit risk could limit the benefit of rising rates.