In the Seoul foreign exchange market on the 16th, the won-dollar rate opened at 1,501 won. On the previous transaction day, the 13th, it briefly hit 1,500.9 won after the weekly transaction close. Recently, the rate has been touching 1,500 won and then pulling back with increasing frequency. This high-altitude run above 1,400 won has already continued for seven months, setting the longest record on record.
The won-dollar rate has stayed above 1,400 won for the 108th transaction day since surpassing 1,400 won on Sept. 30 last year. The previous longest stretch above 1,400 won came after the Dec. 12–3 martial law, at 101 consecutive transaction days (Dec. 2, 2024–May 2, 2025). During the IMF foreign exchange crisis, it stayed above 1,400 won for 66 consecutive transaction days (Dec. 9, 1997–March 20, 1998), and during the global financial crisis, for 25 consecutive transaction days (Feb. 12, 2009–March 18, 2009).
The government is also concerned about the prolonged period of a strong dollar–weak won. Koo Yun-cheol, Deputy Prime Minister for the Economy and Minister of Strategy and Finance, met with Japanese Finance Minister Katayama Satsuki on the 15th in Japan. Afterward, Koo told reporters, "We discussed ways for the two countries to closely monitor the foreign exchange market for stability and to take appropriate measures against disorderly movements." He added that, if necessary, "we could conduct verbal intervention (in the foreign exchange market)."
If the strong dollar–weak won persists, the burden could grow for corporations that import raw materials and export finished goods. Lee Jinkyeong, head of the economic division at The Federation of Korean Industries, said, "To secure price competitiveness overseas, it is structurally impossible to pass all raw material price increases on to finished goods prices."
Lee Jinkyeong, a researcher at Shinhan Investment & Securities, said of the rate outlook, "With geopolitical risks persisting, the pressure for weakness in the won—as a risk asset—(rising exchange rate) will extend."