JPMorgan has indicated that its forecast for South Korean interest rates, which already stands above the market consensus, could face further upward revisions if a semiconductor-driven economic boom fuels inflation, provided credit and financial markets remain stable.

The Wall Street firm projects that the Bank of Korea will raise rates in November of this year, followed by additional hikes in February and May of next year, bringing the benchmark policy rate to 3.75% by the end of this tightening cycle.

This projection exceeds the median estimate of 3.5% from a media survey of economists, who anticipate the rate to hold steady at that level until the second quarter of 2028. In an interview, JPMorgan economist Seok Gil Park stated, "Our forecast is 3.75%, but it's too early to pin down the terminal rate at this stage. We are experiencing an unprecedented macroeconomic shock."