Lee Chang-yong, the governor of the Bank of Korea, noted during a press briefing held right after the Monetary Policy Committee on the 25th, "At the end of last year, there was a significant increase in political uncertainty and a strong dollar simultaneously, which led to a considerable increase in exchange rate volatility. However, it has been gradually easing since the beginning of the year," adding, "Internally, we believe that it has eased significantly compared to a month ago."
Specifically, he said, "If you look at the dollar index (DXY), it rose about 15% after the martial law but has now returned to the original state," adding, "From just the index perspective, the strong dollar has returned to the situation before the martial law."
He continued, "However, even with the strong dollar returning to the pre-martial law state, the exchange rate is still about 30 won higher than before, which is due to a combination of factors including political uncertainty, Trump's tariff policy, the influence of the Federal Open Market Committee (FOMC), and domestic investors' overseas investments."