A simultaneous surge in US, Japanese and European government bond yields, with the US 10-year at 4.8%, is feeding into Korean lending and corporate bond rates, increasing valuation pressure and triggering four consecutive sessions of foreign net selling totaling KRW 3.9 trillion and a 3–4% KOSPI slide. Persistently high rates constrain the market's upside.
Back-to-back rate hikes and hawkish Jackson Hole messaging persisted throughout the seven-day window. On Thursday, US 10-year yields of 4.8%, Korean yields jumping to 4.4% and foreign outflows sharply shifted the tone toward bearishness and drove a surge in news attention.
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Why it matters
Previously centered on the Bank of Korea's policy meeting and Jackson Hole, the narrative now features a global long-bond shock translating into an actual KOSPI selloff and higher lending rates. Supported by research and news.
What would change it
A competing view holds that the semiconductor boom and current-account surplus support won strength and a sharp increase in foreign reserves, cushioning the bond-market shock.
Korea exposure
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Observed evidence · 8 research notes · 474 news mentions
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