South Korea's Bank of Korea (BOK) raised its benchmark interest rate by 0.25 percentage points to 3% on Thursday, marking the first consecutive meeting increase in nearly four years as the central bank moves to rein in inflation, rising housing prices, and a weakening won. BOK Governor Shin Hyun-song described the move as a "preemptive" response, noting that consumer prices rose 2.8% year-on-year in July — still well above the bank's 2% target — while core inflation hit its highest level since late 2023. The governor signalled caution about further near-term hikes, suggesting the board expects only one additional rate rise across the next four meetings as policymakers assess the impact of the two consecutive increases.