BANK OF KOREA WARNS CHIP BOOM COULD REIGNITE INFLATION

According to Jin10, the Bank of Korea warned that inflationary pressure could rise again if income growth for companies and households from the semiconductor boom turns into consumption. As semiconductor export prices rise and purchasing power strengthens, the central bank said demand could exceed existing supply capacity once consumption begins to accelerate. It also said the same demand-side price pressure is one reason behind its recent series of consecutive rate hikes.