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South Korea will feel the pain of troubles at Samsung, Hyundai Add to ...

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South Korea’s central bank kept its key interest rate unchanged Thursday at a record low 1.25 per cent after assessing such risks to the recovering economy as slowing export demand, soaring household debt and a likely rate hike later this year by the U.S. Federal Reserve.

One other deepening worry loomed over the policy meeting: The sea of troubles engulfing Samsung and Hyundai. South Korea’s two largest conglomerates account for at least one-third of Asia’s fourth-biggest economy. So any serious corporate woes are bound to have an outsized impact.

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