URGENT UPDATE: South Korean companies are adjusting their business strategies in response to a rapidly declining Korean won, with the majority predicting the exchange rate will remain above 1,400 won per dollar through 2026, according to a new survey from The Korea Economic Daily. This alarming trend signals a shift towards a “new normal” as 58.7% of currency experts forecast continued currency volatility.
As of November 19, 2025, the Korean won closed at 1,465.6 per dollar, marking a 0.3 won drop from the previous day. The benchmark Kospi index also suffered, falling 0.6% to 3,929.51, while the Kosdaq dropped 0.8% to 871.32. With the won’s decline, corporate leaders are voicing urgent concerns over the long-term impacts on the economy.
Over two-thirds of financial experts surveyed believe the era of a weak won is becoming entrenched due to a surge in outbound investments, particularly in U.S. stocks. This shift is raising alarm bells as the country’s external financial assets hit a record $2.8 trillion by the end of September, with overseas securities investments climbing by $89 billion.
Kim Jong-deok, CFO of Daehan Shipbuilding, states, “The weakening growth potential has made the current dollar-won exchange rate a new normal.” Analysts emphasize that there are no clear catalysts to strengthen the won, raising the stakes for South Korea’s economic stability.
The survey of 100 treasury and foreign exchange specialists highlights that 61.8% of respondents view an exchange rate above 1,400 won as detrimental to the economy. The longstanding belief that a weaker won boosts export competitiveness is being challenged, with a third of experts acknowledging that the current foreign exchange climate could be tolerated but remains harmful.
Industry executives express that rising costs for imported raw materials due to a depreciating won are eroding profit margins instead of enhancing export capabilities. Hwang Jae-seon from Samyang Roundsquare warns that the increased input costs could lead to broader inflation, negatively impacting household spending.
In response to the ongoing crisis, 48.5% of survey participants advocate for deregulation and labor-market flexibility to attract corporate investment back to South Korea. With overseas direct investment reaching a record $34.57 billion last year, the pressure is mounting for policymakers to create a more favorable investment environment.
The call for robust economic fundamentals is echoed by 35.1% of experts, who stress the necessity of a disciplined fiscal approach. With a growing consensus that elevated exchange-rate volatility is now a structural characteristic of the South Korean economy, companies are compelled to adapt their planning accordingly.
As this situation unfolds, South Korean businesses and policymakers face significant challenges. The urgent need for effective strategies to stabilize the currency and restore investor confidence has never been more pressing. Observers are closely monitoring these developments, as the implications for the economy could resonate far beyond the nation’s borders.
