These days, there are visible changes in Korea

These days, there are visible changes in Korea.
Above all, “The Bank of Korea” raised its overnight call rate by a quarter percentage point to the highest level in three years. Some experts said that the truth is hardly surprising, call rates are increasing. As well as, some economists expect the Bank of Korea to increase the rate at least once more this year. The central-bank governor, Park Seung, also said that at 4% the rate still supports economic growth but is "very close to being neutral. He is convinced that he is right.

But I think there is another problem in the situation. At first, the bank's move came despite concern over the rising value of the nation's currency and despite fierce political pressure from the government. A stronger won hurts exports, a traditional engine of economic growth because it makes South Korean goods more expensive abroad. It could be a deathblow to Korea’s foreign trade. However there are a lot of South Korean companies, especially small traders, concerned about the won's gains. Samsung Electronics, Hyundai Motors and other corporate giants have hedged their currency bets,

Speaking to reporters after the rate increase, Park, the central bank governor, said a rise was needed to fight inflationary pressure since South Korea's economy is recovering faster than expected because of strong private consumption. Likewise there are many things to figure out. The Bank of Korea has to do something to solve the problem.