Korea's monetary policy should focus on preventing core inflation from spreading broadly and remaining elevated as robust exports spill over into the broader economy and intensify demand-side inflationary pressures, a central bank report said Sunday. "As the recent strong performance in semiconductor exports spills over into domestic demand, there is a possibility that demand-side inflationary pressures will intensify in the future," said a report published by the Bank of Korea (BOK). The recent boom in artificial intelligence (AI) infrastructure has pushed up semiconductor prices and improved Korea's terms of trade, while the country has continued to benefit from robust semiconductor exports. In the first quarter, Korea's real gross domestic product (GDP) grew 3.8 percent from a year earlier, while real gross domestic income (GDI), which reflects changes in the terms of trade, expanded 13.2 percent. When oil prices rise, GDI typically grows more slowly than GDP because deteriorating terms of trade weigh on the Korean economy, which relies heavily on crude oil imports. However, in the fir
Eximbank backs LS Cable’s US subsea plant with W300b