2026.05.2902:21:49UTC+00Korean Won Remains Under Pressure

The South Korean won weakened to around 1,500 per dollar on Friday, erasing the previous session’s gains. Investors remained cautious, balancing concern over South Korea’s slowing domestic economy and sustained capital outflows against improving global risk sentiment driven by easing Middle East tensions.

Market optimism improved following reports that the United States and Iran were moving toward a 60-day extension of their ceasefire arrangement while resuming negotiations over Tehran’s nuclear program. Oil prices also retreated, with Brent crude slipping about 0.4% to trade near $93 per barrel.

At the same time, the US dollar broadly weakened against major developed-market currencies, and Treasury yields fell across the curve in the previous session. Markets also tracked the South Korean government’s new reshoring initiative, designed to entice overseas Korean firms to return by offering expanded incentives and more flexible subsidy support for strategic industries.