The Bank of Korea (BoK) regularly publishes the Economic Outlook, offering forecasts for key macroeconomic variables such as GDP growth, inflation, and unemployment rates. This study examines whether the BoK’s inflation forecasts exhibit bias, specifically a tendency to align with its inflation target. We extend the Mincer and Zarnowitz (1969) test to incorporate state-dependency, defining the state of the economy based on whether realized inflation falls below the target at the time of the forecast. Our analysis reveals that the BoK’s inflation forecasts arebiased under this state-dependent framework. Furthermore, we show that applying an AR(1) bias correction strategy enhances forecast accuracy, as demonstrated by a reduction in root mean square error.