Ryoo Sangdai, senior vice governor of the Bank of Korea, said South Korea should address the high cost of living through structural reforms rather than relying on the central bank, according to Jinshi. He stressed that the Bank of Korea's main target is inflation, not the price level. Ryoo warned that targeting the price level rather than the inflation rate could increase inflation and economic volatility. In addition, South Korean President Yoon Seok-yeol said this week that it might be necessary to cut interest rates. Ryoo did not comment on next week's policy decision, but he said the recent trend of the won seems to be affected by factors such as the state of the South Korean economy and capital flows.
