UPDATE: The South Korean won has rebounded sharply from recent lows following urgent interventions by government officials to stabilize the currency. As of November 14, 2025, the won strengthened to approximately 1,450 per dollar, recovering from earlier trading in the mid-1,470 range, as authorities implemented a mix of verbal warnings and suspected dollar-selling operations to counter the currency’s decline.
Deputy Prime Minister and Finance Minister Koo Yun-cheol emphasized the government’s deepening concern over the won’s slide during a market-monitoring meeting held earlier today. He highlighted the significant impact of increasing overseas investments on foreign-exchange supply and demand, stating, “There was broad agreement on the need for structural improvements in the foreign-exchange balance.” Koo warned that continued imbalances could lead to entrenched expectations of a weaker won, which would further constrain its value.
In a strong signal to the markets, Koo announced that authorities would actively utilize available policy tools to ensure FX stability. The Ministry of Finance, along with FX and financial regulators, is set to analyze the causes of the won’s weakness and collaborate with major market players, including the National Pension Service (NPS) and leading exporters, to formulate stabilization measures.
The impact of Koo’s remarks was immediate, with the won recovering from 1,475.4 to 1,455.9 per dollar on the Seoul onshore market. The dollar-won pair opened at 1,471.9, briefly climbing to 1,474.9 before retreating, showcasing the currency’s volatility.
FX analysts noted that while verbal intervention played a role, the rebound appeared too sharp to be solely attributed to these comments. Some traders reported signs of actual intervention, likely involving targeted dollar-selling by authorities to counter disorderly market moves. “There were signs of actual intervention around the comments,” stated a senior currency dealer at a local bank.
Despite today’s recovery, analysts caution that broader trends remain concerning. The dollar’s strength, ongoing geopolitical uncertainty, and cautious investor sentiment continue to loom large. The government’s pre-emptive measures reflect fears that the won could breach the 1,480 mark without more robust policy signals.
Earlier this week, the won fell below 1,470, marking its weakest point since April 9, 2025, when the exchange rate peaked at 1,484.1 amid escalating tensions between the U.S. and China. The current levels are reminiscent of the political turmoil triggered by a brief declaration of martial law in South Korea, adding to the emotional weight of this economic situation.
The declines have been exacerbated by heavy foreign selling in the Kospi as global investors booked profits from previous gains in Korean stocks. Additionally, persistent demand for dollars from retail investors seeking to invest overseas has put further pressure on the won. Economists warn that if current trends persist, the won could approach 1,500 by the year’s end, having already spent 31 consecutive trading days above 1,400 per dollar.
As of shortly before noon today, the won was trading at 1,459.5 per dollar. Investors and policymakers alike will be watching closely as the situation unfolds, particularly for any additional measures from authorities aimed at stabilizing the currency in the face of ongoing pressures.
