Korea-US interest gap widens to record high after Fed rate hike
Top financial officials, from left, Bank of Korea (BOK) Governor Rhee Chang-yong, Finance Minister Choo Kyung-ho, Financial Services Commission (FSC) Chairman Kim Joo-hyun and Financial Supervisory Service (FSS) Governor Lee Bok-hyun, attend an emergency economic and financial policy meeting in central Seoul, Thursday. YonhapExperts say solid fundamentals prevent major capital outflowBy Anna J. ParkThe interest rate gap between Korea and the U.S. has widened to an all-time high of two percentage points, following the U.S. Federal Reserve's interest rate hike of a quarter of a percentage point overnight, triggering concerns of a possible capital exodus from Korea in pursuit of higher returns.The U.S. Federal Open Market Committee (FOMC) approved the interest rate hike to a target range of 5.25 to 5.5 percent, Wednesday, U.S. time. The U.S.' benchmark borrowing cost has not only reached the highest level in 22 years, but the interest rate gap between the two countries has also widened to an all-time high, as the Bank of Korea (BOK) has kept the base rate frozen at 3.5 percent since Jan
