UPDATE: The South Korean won has experienced a significant rebound today, moving sharply from seven-month lows after authorities announced urgent measures to stabilize the currency. Trading around 1,450 per dollar this morning, the won recovered from the mid-1,470 range seen earlier, signaling immediate market intervention.
During a market-monitoring meeting held on November 14, 2025, Deputy Prime Minister and Finance Minister Koo Yun-cheol expressed deep concern over the rapid depreciation of the won. He highlighted that rising overseas investments by Koreans have created imbalances in foreign-exchange supply and demand. “There was broad agreement on the need for structural improvements in the foreign-exchange balance,” Koo stated, warning that persistent imbalances could entrench expectations of a weaker won among market participants.
Authorities confirm they will utilize all available policy tools to stabilize the foreign exchange market. The Ministry of Finance and financial regulators are set to collaborate with major market players, including the National Pension Service (NPS) and large exporters, to devise stabilization measures aimed at restoring confidence.
The immediate impact of Koo’s remarks was palpable, with the won strengthening to 1,455.9 per dollar from 1,475.4 following his announcement. The dollar-won pair initially opened at 1,471.9, briefly climbing to 1,474.9 before retreating. This marks the government’s first explicit verbal intervention since October, and analysts noted that investors welcomed these comments, seeing the won’s previous decline as excessive and unjustified by fundamental economic indicators.
Additionally, FX traders suspect that the recovery was bolstered by actual dollar-selling operations conducted by authorities, aimed at countering the disorderly movements in currency trading. “There were signs of actual intervention around the comments,” said a senior currency dealer at a local bank.
Despite today’s recovery, analysts caution that the broader context remains challenging, with persistent dollar strength, geopolitical uncertainties, and cautious market sentiment weighing heavily. The government’s preemptive actions reflect fears that the won could breach 1,480 without stronger policy signals in place.
The recent slide of the won, which fell below the 1,470 level this week, marked its weakest point since April 9 when it reached 1,484.1 amid escalating US-China tensions. The currency’s movements are reminiscent of the political turmoil experienced during the martial law declaration by former President Yoon Suk Yeol.
Foreign selling in the Kospi and a surge in dollar demand from retail investors seeking overseas investments have also contributed to the won’s volatility. The won is currently trading near levels last seen in December 2024, with economists warning that if current trends continue, it could approach 1,500 by year-end.
As of shortly before noon today, the won was trading at 1,459.5 per dollar. Market participants are urged to stay alert for further announcements from the government and regulatory bodies as they work to stabilize the currency in the face of ongoing economic pressures.
Stay tuned for more updates on this developing story as authorities continue to address the impacts on the South Korean economy and the financial markets.
