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Seoul Moves to Steady Won After Slide to Seven-Month Low

Officials point to a structural dollar shortfall from rising overseas investment by residents, signaling coordination with the pension fund and major exporters.

Overview

  • The won fell to as weak as 1,474.9 per dollar early Friday before rebounding to roughly 1,456–1,459 after authorities issued verbal intervention and policy pledges.
  • Finance Minister Koo Yun-cheol met with BOK Governor Rhee Chang-yong and top financial regulators, vowing to actively use available tools to stabilize the foreign-exchange market.
  • Authorities said they will work with the National Pension Service and major exporters to analyze depreciation drivers and craft measures to improve FX supply-demand imbalances.
  • Officials and analysts cited a stronger U.S. dollar, a softer yen, foreign investors’ stock selling, increased resident investment in U.S. assets, and exporters delaying dollar conversions as key pressures.
  • Volatile moves are disrupting corporate planning and squeezing import-reliant firms, with smaller companies described as especially vulnerable to higher input costs and currency risk.