UPDATE: South Korea’s currency, the won, is experiencing a significant rebound after authorities intervened to stabilize its value amid mounting concerns over its recent decline. As of November 14, 2025, the won strengthened to approximately 1,450 per dollar, recovering from a troubling drop to the mid-1,470 range earlier today.
Deputy Prime Minister and Finance Minister Koo Yun-cheol expressed urgency during a market-monitoring meeting, highlighting the increasing worries surrounding the won’s descent. He noted the impact of Koreans’ rising overseas investments on foreign-exchange supply and demand, emphasizing the need for immediate structural improvements to maintain currency stability.
“There was broad agreement on the need for structural improvements in the foreign-exchange balance,” Koo stated. He warned that if the current imbalance continues, expectations of a weaker won could become entrenched, which would severely limit the currency’s ability to recover.
Authorities are now mobilizing a coordinated response, as FX and financial regulators will analyze the underlying causes of the won’s weakness and collaborate with key players, including the National Pension Service (NPS) and major exporters, to develop effective stabilization measures.
The government’s intervention marks the first clear verbal action since October, resulting in an immediate impact. The won surged from 1,475.4 to 1,455.9 during trading in Seoul. FX analysts noted that investors welcomed Koo’s remarks, as the won’s decline had previously outpaced economic fundamentals, primarily due to supply-demand distortions rather than genuine economic deterioration.
In addition to verbal warnings, market insiders reported signs of possible dollar-selling interventions by authorities to counteract disorderly market movements. “There were signs of actual intervention around the comments,” a senior currency dealer stated, suggesting that the recovery observed today may also be attributed to these actions.
Despite this rebound, analysts caution that it may not significantly alter the broader trend of a strong dollar, ongoing geopolitical tensions, and cautious investor sentiment. The government’s proactive measures reflect serious concerns that the won could breach 1,480 without stronger signals of policy support.
Earlier this week, the won fell below 1,470, marking its weakest level since April 9, when it reached 1,484.1 amidst escalating US-China tensions. It now mirrors levels last observed during the political unrest provoked by then-President Yoon Suk Yeol’s brief declaration of martial law.
The weaker won has been exacerbated by heavy foreign selling in the Kospi, as global investors capitalize on profits following several months of gains in South Korean equities. Increased demand for dollars from retail investors purchasing overseas assets, particularly US tech stocks, has also put pressure on the currency.
As of noon today, the won is trading at 1,459.5 per dollar, having spent an alarming 31 consecutive trading days above 1,400 per dollar. Economists in Seoul warn that if current trends continue, the won could approach 1,500 by year-end.
Market participants are urged to monitor developments closely, as the government’s intervention strategy will be critical in determining the future trajectory of the won and overall market stability.
