SEOUL (Reuters) - South Korean President Yoon Suk Yeol said on Thursday there was a need to "manage" policy interest rates should expectations about lower borrowing costs lead to further price increases in the country's already hot housing market.

"It won't matter if it (home buying) is real demand, but if speculative demand stemming from asset management purposes boost home prices we will manage policy interest rates. We need to make clear messages on that to calm the overheated sentiment," Yoon said during a televised news conference.

The Bank of Korea (BOK) said at its Aug. 22 meeting that it was time to prepare to cut interest rate cuts after leaving the benchmark rate steady at a 15-year high of 3.50% for the 13th straight meeting, as expected.

Yoon did not elaborate on whether he meant to manage policy interest rates set by the BOK or borrowing costs related to policy financing of local mortgage products.

The BOK's independence to set policy interest rates is guaranteed by law, but governments have a track record of pressuring the seven-memeber board to cooperate over policy direction.