Won Slips Amid Mixed Signals on US–Korea Trade Agreement

2025-10-30 02:46 By Mariene Camarillo 1 min. read

The South Korean won depreciated to around 1,427 per dollar on Thursday, pulling back from the previous session’s gains amid the finalization of the Seoul–Washington tariff deal.

Under the finalized terms, Washington will maintain its reciprocal duties but lower sectoral tariffs on Korean automobiles and auto parts to 15% from 25%, ensuring Korean exporters remain competitive in the US market.

However, investors took a cautious stance after US Commerce Secretary Howard Lutnick clarified that semiconductor tariffs are not part of the deal and that South Korea agreed to “fully open its markets, 100 percent.” In response, the presidential office on Thursday dismissed Lutnick’s remarks, confirming that semiconductor tariffs were included in the finalized agreement.

The contradictory statements from both sides have created confusion in markets, leaving investors uncertain about the exact scope of the agreement and its implications for Korea’s high-tech exporters.



News Stream
South Korean Won Remains Under Pressure
The South Korean won hovered around 1,510 per dollar, remaining close to its weakest levels since 2009, as global risks and persistent capital outflows continued to weigh on the currency. Crude oil prices stayed elevated near $100 per barrel amid ongoing Middle East tensions, keeping imported inflation risks prominent. Additional downside pressure came from sustained capital outflows, with heavy net selling by foreign investors, amplifying demand for the greenback and weighing on the currency. Meanwhile, US President Donald Trump signaled that military operations in Iran could conclude within weeks. While this lifted market sentiment and eased some oil-driven inflation concerns, the currency’s recovery was limited by structural headwinds. The Bank of Korea has signaled readiness to intervene if volatility intensifies, helping to contain further losses. The won is likely to trade in a narrow range in the near term.
2026-04-01
South Korean Won Hits 17-year Low
The South Korean Won touched 1519.00 against the USD, the lowest since March 2009. Over the past 4 weeks, US Dollar South Korean Won gained 4.41%, and in the last 12 months, it increased 3.06%.
2026-03-30
South Korean Won Drops to 17-Year Low
The South Korean won weakened past 1,525 per dollar, extending losses to its weakest level since March 2009, amid heightened global risk aversion over escalating tensions in the Middle East. Markets reacted to US President Donald Trump’s threat to strike Iran’s oil wells and key export infrastructure if a deal is not reached soon, prompting broad foreign outflows from Asian currencies. Rising oil prices, now above $100 per barrel, added further pressure on the won, stoking concerns over inflation and South Korea’s energy-dependent economy. For the month, the won has lost roughly 5% against the dollar. Policymakers have deployed a mix of interventions, including raising the national pension fund’s hedging ratio, but experts note that options to stabilize the currency are limited amid safe-haven flows into the US dollar. Bank of Korea governor nominee Shin Hyun-song highlighted the need for flexible monetary measures to manage risks.
2026-03-30