Geopolitical risk from the Middle East is shaking monetary and financial policy, with the Bank of Korea holding its policy rate at 2.50 percent for a seventh straight meeting. Governor Rhee Chang-yong warned stagflation cannot be ruled out depending on developments. Financial authorities are expanding support by 26.8 trillion won and boosting contributions and small loans for vulnerable groups. Banks are testing new credit-scoring models for small merchants and firms are widening AI- and platform-based services.

South Korea\'s Financial Supervisory Service has launched an effort to overhaul disclosure practices across the pharmaceutical and biotech sector after controversy involving Samchundang Pharm. The regulator views a practice of releasing contract results and business outlooks via press releases while delaying formal filings as a source of investor confusion. A new task force will review disclosure forms and consider press release guidelines. The moves follow exchange action over fair disclosure and market concerns over a licensing deal and planned insider sales.