UPDATE: The South Korean won has plunged to a seven-month low against the US dollar, closing at 1,456.9 won per dollar on November 7, 2025. This significant drop comes amidst a wave of foreign stock selling on the Kospi market, fueled by heightened risk aversion tied to uncertainty in the US jobs market.
As foreign investors continue to retreat from Korean equities, the won fell sharply, opening at 1,448.1 won before sinking to an intraday low of 1,458.5 won. The 1.81% decline in the benchmark Kospi index is the steepest it has seen in nearly two months, closing at 3,953.76.
The downward trend was exacerbated by alarming data from employment consulting firm Challenger, Gray & Christmas, which reported that US companies announced 153,074 job cuts in October, the highest for that month since 2003. This has raised concerns over the stability of the world’s largest economy and sparked a flight from risk-sensitive assets, including the won.
Foreign investors sold off a net 479.1 billion won (approximately $329 million) worth of shares, marking the fifth consecutive session of net selling. Analysts speculate that this trend is driven by profit-taking among foreign investors, alongside a growing sentiment of uncertainty about the global economic landscape.
“The won has no clear support factors at the moment,” stated a Seoul-based currency trader. “Every global risk headline and every bit of dollar strength is being amplified by the structural outflow pressure from Korean investors.”
With no immediate catalysts for recovery, analysts warn that the currency’s weakness may persist longer than in previous instances. Korea’s ongoing surge in overseas investments, including a government initiative to channel up to $20 billion annually into US assets, raises concerns that demand for dollars will continue to outstrip supply.
Looking ahead, experts predict the won may test the 1,480 level in the near term, with some fearing a potential fall to 1,500 by year-end. “The exchange rate could reach 1,500 by year-end,” cautioned Park Hyung-jung, an economist at Woori Bank, urging that decision-making should consider the elevated level of the won as a new normal.
As the situation develops, the implications for South Korea’s economy are profound. The government’s plan to invest in US assets is perceived by some analysts as a hindrance to the authorities’ ability to intervene in the currency market effectively.
With no signs of immediate recovery, traders and investors alike are bracing for a turbulent period ahead. The combination of structural outflows and global economic uncertainty could keep the won under pressure for the foreseeable future. Share this urgent update as South Korea navigates this challenging economic landscape.
