Bank of Korea

On June 12, 1950, the Government of South Korea established the Bank of Korea under the Bank of Korea Act, creating the nation's central bank just weeks before the Korean War erupted. Headquartered in Seoul's Jung District, the bank has navigated decades of rapid economic transformation, from postwar reconstruction to its role as Asia's fourth-largest economy. Its primary mission is price stability, achieved through monetary policy tools like the base rate, which the Monetary Policy Board adjusts at regular meetings.

The bank issues and manages the South Korean won, oversees the payment and settlement systems, and acts as lender of last resort to commercial banks. It also holds and manages the country's foreign exchange reserves. Governor Rhee Chang-yong chairs the Monetary Policy Board, which most recently raised the base rate by 25 basis points to 2.75% on July 16, 2026. The bank publishes economic research, including the BOK Issue Note series, and operates a museum with public exhibitions and educational programs.

Beyond domestic duties, the Bank of Korea participates in international initiatives like Project Mandala, a Bank for International Settlements effort to embed regulatory compliance into cross-border payments. It collaborates with other central banks on climate-related financial policy and publishes data on asset tokenization and the effects of consumption coupons. The bank maintains a reputation for independence and transparency, communicating policy decisions through press conferences and regular reports. [edit]