02.01.202604:35:18UTC+00South Korean Won Steadies on BOK Remarks

As the South Korean financial markets opened for trading in 2026, the South Korean won remained stable at approximately 1,440 against the US dollar. This steadiness followed statements from the Governor of the Bank of Korea, Rhee Chang-yong. Governor Rhee highlighted that the won's value does not accurately reflect the country's economic fundamentals, cautioning that a continued depreciation might increase inflation and negatively impact firms focused on domestic markets. He stressed the central bank's commitment to preventing any US-directed investments that could jeopardize foreign exchange stability, in line with the newly established trade agreement between Seoul and Washington that limits annual outflows to $20 billion. Furthermore, Rhee called upon the National Pension Service to reassess its international investment strategies. The government is currently employing temporary tax exemptions to lure foreign investments back into South Korean equities and is facilitating direct dollar sales via the National Pension Service. The strong performance in foreign trade is also providing support to the won, with export figures for 2025 reaching an unprecedented $709.7 billion, primarily driven by the semiconductor and automotive industries. Notably, December alone saw a trade surplus of $12.2 billion, contributing positively to foreign exchange inflows.