Bank of Korea: "Downward Pressure on Stock Prices Limited"

The Bank of Korea said strong earnings prospects for chipmakers and other firms should limit downside pressure on stocks despite recent market volatility.

It flagged risks from AI industry uncertainty, foreign selling, and rising leveraged investment, and said it will step up market monitoring.

The central bank kept open the possibility of further rate hikes as it balances inflation pressures and household debt risks.

It also outlined plans to expand CBDC-based deposit tokens and review a won-backed stablecoin framework.