Weak won helped Korea's growth in 2025: HSBC

HONG KONG — Last year's currency depreciation has strengthened export competitiveness and contributed to growth, HSBC said Monday. "We do not believe that the weak won itself was a challenge for Korea’s economic performance — rather, it likely supported it over the past year," said Frederic Neumann, HSBC's Chief Asia Economist, during a virtual press conference for the HSBC Asian Outlook 2026 on Monday. Neumann explained that the won's weakness helped Korean exporters remain competitive, especially as global commodity prices — particularly oil — have stabilized, reducing inflationary pressure. Despite unfavorable conditions such as tariff frictions with the United States, Korea’s exports surpassed $700 billion for the first time in 2025. However, Neumann warned that concerns over a weak currency could prevent the Bank of Korea (BOK) from cutting interest rates, limiting the monetary easing needed to sustain growth. BOK has kept its key policy rate unchanged for five consecutive meetings, citing concerns over the weakening won. Some market watchers believe the easing cycle haWeiter zum vollständigen Artikel bei Korea Times Weiter zum vollständigen Artikel bei Korea Times