2026.02.2402:35:31UTC+00South Korean Won Eases on Escalating US Tariff Risks

The South Korean won weakened to around 1,446 per dollar, edging lower from the previous session as renewed US tariff threats put pressure on the currency. Investor caution intensified after Washington signaled it may pursue broader trade actions, including potential Section 301 investigations, heightening concerns that Korea’s key export sectors—particularly automobiles and semiconductors—could face increased scrutiny. The prospect of escalating trade frictions has clouded the export outlook and weighed on the won.

At the same time, the Bank of Korea is widely expected to leave its policy rate unchanged at 2.50% this week, extending its pause for a sixth consecutive meeting. Analysts also anticipate upward revisions to the 2026 growth and inflation forecasts, supported by strong semiconductor exports and firmer domestic demand. Some economists argue that the next policy move is more likely to be a rate hike than a cut, which could help support yields on won-denominated assets and contain further currency losses.