The South Korean won broke the 1,530-won per U.S. dollar level and later surpassed 1,540 won in overnight trading on Thursday [1, 2].
This currency depreciation marks a significant milestone in financial instability, reaching levels not seen in over 17 years. The trend reflects deepening investor anxiety regarding regional security and the stability of the Korean stock market.
The exchange rate started trading above 1,530 won [1]. This is the first time the currency has crossed this threshold since March 10, 2009, representing a span of 17 years and three months [1]. The weekly-close price was recorded at 1,529.7 won [2].
Market analysts point to two primary drivers for the decline. Rising geopolitical tensions in the Middle East have pushed investors toward safe-haven assets, including the U.S. dollar, while foreign investors have engaged in a net sell-off of Korean equities [1, 2].
The won has remained under sustained pressure. It has traded above 1,500 won for 13 consecutive trading days [2]. Additionally, the weekly price rose by 13.3 won [2].
Government officials are monitoring the volatility closely. Deputy Prime Minister Gu Yoon-chul said, "지나친 쏠림에는 필요한 조치를 취하겠다" (We will take necessary measures against excessive one-sided movements) [1].
“The won broke the 1,530-won per US dollar level for the first time since 2009.”
The breach of the 1,540-won level suggests a shift in the perceived risk profile of the South Korean economy. Because the won is highly sensitive to global trade and geopolitical stability, this decline indicates that external pressures—specifically Middle East instability and the exit of foreign capital—are currently outweighing domestic economic fundamentals.
