The won-dollar exchange rate opened at 1,519.9 won on the 31st, up 4.2 won from the previous day.
It is seen as a result of U.S. President Donald Trump raising pressure overnight by saying he would blow up Kharg Island if there is no deal with Iran. Kharg Island is a coral island 26 kilometers off the Iranian coast in the Persian Gulf, where a crude oil export terminal is located. When geopolitical risks rise like this, investor appetite for risk assets weakens, and the won, which is not a reserve currency, tends to fall.
On the 30th (local time), President Trump said on the social media platform Truth Social, "If we do not reach an agreement with Iran, I will blow up all power plants, Kharg Island, and desalination facilities." He also said, "If we do not soon reach an agreement (with Iran), and if the Strait of Hormuz is not immediately 'opened for commercial use.'"
Iran, for its part, appeared unshaken. The same day, according to Iranian media, the Iranian parliament's National Security Committee approved a new management plan related to the Strait of Hormuz, the world's largest energy corridor. The plan reportedly includes charging tolls to ships passing through the strait.
Min Kyung-won, a Woori Bank researcher, said, "The market is currently pricing in the possibility of an escalation."