BusinessLatest Korea cuts interest rate to record low 1.25% By Hamza Khan - June 9, 2016, 8:35 AM 325 Share on Facebook Tweet on Twitter SEOUL: South Korea’s central bank on Thursday cut its key interest rate to a record low 1.25 percent. The Bank of Korea lowered the policy rate by 0.25 percentage points, marking the first rate cut in 12 months.