15.12.202502:28:49UTC+00South Korean Won Hits Over 8-Month Low

The South Korean won depreciated to approximately 1,477 per dollar on Monday, reaching its lowest point in over eight months due to ongoing capital outflows, which led authorities to consider intervention. In response to recent fluctuations, the finance ministry and Bank of Korea held an urgent inter-agency meeting over the weekend to discuss possible measures, while the Financial Services Commission committed to taking "bold, preemptive actions" if necessary. As the won hovers at psychologically critical levels, market participants continue to factor in heightened risk, raising concerns about potential repercussions on bond and equity markets. Concurrently, South Korean equities experienced a significant downturn, with the KOSPI index dropping 2.1% in early trading. This decline was driven by a retreat in heavyweight technology stocks, including Samsung Electronics and SK hynix, following renewed caution in the US AI sector. The selloff in equities increased pressure on the won as foreign investors adjusted their positions and hedged against currency exposure.