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Advertisement South Korea has weathered the pandemic better than nearly every other advanced economy, but financial risks have grown significantly over the past year, according to a new report issued by the country’s central bank. Stressing that the financial market remains stable, the Bank of Korea (BOK) on Tuesday pointed out concerning recent developments that could be the impetus for an interest rate hike in the coming months. Though it does not come as a shock that many put themselves in a more precarious situation to get through the difficulties of the pandemic, the latest Financially Stability Report importantly provides a clearer picture of South Korea’s overall financial health. One of its key metrics is the BOK’s Financial Vulnerability Index, a composite index ranging from 0 to 100 calculated from 39 indicators. The index increased from 41.9 before the outbreak of COVD-19 to 58.9 through the first quarter of this year. This jump hastens a climb in the inde ....