# South Korea Central Bank Keeps Policy Restrictive as Won Strengthens

By Riza Dagoc

Canonical URL: https://www.tokenpost.com/news/regulation/31057
Published: 2026-10-13T11:25:11.000Z
Updated: 2026-10-13T11:25:11.000Z
Section: Regulation

> The governor said further won appreciation would support the economy by increasing household purchasing power and shifting growth toward domestic demand.

South Korea’s central bank will maintain a restrictive monetary policy stance as further appreciation of the won supports household purchasing power and domestic economic growth.

The governor said Tuesday that policy will remain tight until there is confidence inflation will return to its target on time. The comments came during a discussion in Bangkok held alongside the annual meetings of the International Monetary Fund and World Bank.

The governor said the won’s strength has increased household purchasing power since the central bank shifted toward tighter policy. A stronger currency is also moving more of the economy’s growth momentum toward domestic demand, helping narrow disparities in what the governor described as a “K-shaped economy.”

Inflation, the exchange rate and financial stability are currently pointing in the same policy direction, making the central bank’s policy trade-offs easier than usual, the governor said.