South Korea Faces Policy Divergence as Government Budget Expansion Clashes with Central Bank Tightening

[Yoo Choon-sik] Fiscal expansion vs. BOK tightening

With the South Korean government expected to submit its 2027 budget proposal to the National Assembly within days, recent comments by senior policymakers, both in official settings and elsewhere, suggest that next year’s budget could contain features not seen in the country for decades. The circumstances alone make the plan unusual. South Korea’s economy is expected to record its strongest growth in about a decade, excluding periods distorted by major shocks, thanks largely to the accelerating g

By The Korea Herald