Korean Won Hits 1,450 Won per Dollar
- Seoyeon Kim
- Nov 19
- 2 min read
Nov 19, 2025
Seoyeon Kim
The value of the Korean won recently fell past ₩1,450 per U.S. dollar, the weakest level in about a week. This movement may seem small, but it shows bigger problems in Korea’s economy and the global market. The rise of the dollar is not only a short-term event, it reflects growing worries about capital outflow, investor confidence, and the impact of U.S. monetary policy. Foreign investors have sold large amounts of Korean stocks in recent days. When they sell shares, they exchange won for dollars to move their money abroad, which increases the demand for dollars and weakens the won. At the same time, many Korean institutions and individuals are investing more overseas, meaning they also need more dollars. This constant outflow of money puts pressure on the Korean currency and makes it harder for the won to recover.
Another reason behind the weaker won is the strong U.S. dollar. The Federal Reserve has kept interest rates high to control inflation. Because of this, global investors prefer to keep their money in dollar-based assets, which offer better returns. When the U.S. dollar grows stronger, other currencies, especially those of export-driven countries like South Korea, tend to lose value.
This trend has serious economic effects. A weaker won makes imported goods and energy more expensive, which can increase prices at home. It also raises the cost for Korean companies that have to pay back debts in dollars. Exporters may benefit temporarily, as their products become cheaper in foreign markets, but if the weak won comes from financial instability, the benefits may not last long.
The recent fall in the won is therefore not just a normal market change; it shows deeper structural problems. Korea’s economy is facing slow domestic demand and uncertainty in global trade. Investors are moving their money toward safer assets, and the strong U.S. dollar continues to draw capital away from Asia.
The Bank of Korea is watching the situation closely, but strong intervention may not fully stop the trend. The exchange rate near ₩1,450 per dollar has become an important signal of stress in the Korean market. It shows how global and local factors are working together to create pressure on Korea’s financial system.
