Bank of Korea warns: Memory chip boom may increase inflationary pressure
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Glonghui, June 21 — The Bank of Korea has issued a warning that massive performance bonuses resulting from the boom cycle in memory chips may spread from the semiconductor industry to broader sectors, thereby increasing inflationary pressure. With bonuses for Samsung and SK Hynix employees surging dramatically, luxury goods consumption around chip factories has significantly heated up, and retail stocks such as Shinsegae, Lotte Shopping, and Hyundai Department Store have been speculatively traded by investors as “memory chip concept stocks.” Currently, the Bank of Korea forecasts the country’s overall inflation rate this year could reach 2.7%, well above the policy target of 2%. As a result, the July or September policy meetings of the Bank of Korea have already become important windows for possible rate hikes.
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