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    Unemployment rate in South Korea rises to 2.6% from 2.5%

    by VT Markets
    /
    Nov 12, 2025
    South Korea’s unemployment rate rose to 2.6% in October, up from 2.5% before. This change reflects adjustments in the labor market due to various economic factors. Different conditions have affected job availability, leading to this slight increase. While it’s a small rise, the changing unemployment rate shows broader market trends.

    Rising Unemployment Rate

    In October, the South Korean unemployment rate increased slightly to 2.6%. This is the first rise in three months and suggests the economy is slowly cooling down. We need to keep a close eye on upcoming data regarding industrial production and exports. This mild weakness in the job market may influence the Bank of Korea’s (BOK) approach to monetary policy. Recent government data shows consumer price inflation dropped to 2.8% in October, down from over 3% earlier this year. This gives the central bank more room to consider changing its policy. We now see a slightly higher chance of a rate cut in the first quarter of 2026.

    Potential Market Implications

    For currency traders, this outlook suggests potential weakness for the Korean Won. The USD/KRW exchange rate has been moving within a tight range around 1,380, but this news might trigger an upward shift. It may be wise to buy short-term call options on USD/KRW to prepare for a possible approach of the 1,400 mark. For the stock market, a slowing economy could pose challenges for the KOSPI 200 index. In late 2023, similar signs of a weakening job market led to a period of stabilization in the index. Thus, buying protective put options on the KOSPI 200 could be a smart hedging tactic in the coming weeks. Create your live VT Markets account and start trading now.

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