It did so likely due to rising household debt and consumer prices. Two months ago, the Bank of Korea raised its rate to 1 percent from the previous point-7-5%.
"Consumer price inflation in Asia’s fourth-largest country jumped to a near-decade-high of 3.6% in January. This was still above the central bank's target of 2% for a tenth month.
Analysts at Reuters explained that the BOK raised interest rates three more times in August to ease price pressures and curb rampant house-price growth and household debt.