The Bank of Korea raised its benchmark interest rate by 0.25 percentage point to 3.00% on Aug. 27, its second consecutive hike, with minutes released on the 15th showing a 6-1 split. Six members favored preemptive action against above-target inflation, solid growth, expanding liquidity, Seoul-area housing prices and household-debt risks. Hwang Kun-il opposed the increase, saying policymakers needed more time to determine whether demand-driven price pressures would persist, while noting that the won’s appreciation and already-tighter financial conditions reduced the need for immediate action. The bank sharply raised its economic growth forecasts to 3.3% for this year and 2.9% for next year. The minutes also examined foreign-investor rebalancing, leveraged overseas products linked to South Korean stocks, total return swap hedging and risks from a possible yen carry-trade unwinding. Ahead of the October meeting, members left open the possibility of further hikes but said their timing and size would depend on inflation, growth, household debt and the effects on vulnerable borrowers. Economists’ median expectation remains for one further hike in the first quarter of 2027, followed by a pause through at least the end of next year.