Lee Yeon-woo is a financial journalist at The Korea Times. Her wide range of reporting includes policies, macroeconomics, stock market, companies and even crypto. She is passionate about connecting the dots in Korean finance and making it easier for foreign nationals to understand. Based on her previous experience as a national reporter, she also has a keen interest in social issues within the sector, including gender equality and ESG. Your tips and insights are always appreciated. You can send them to yanu@koreatimes.co.kr.
Won nears 1,560 on strong dollar, foreign stock selling
The won-dollar exchange rate and KOSPI index are displayed in the dealing room of Hana Bank in Seoul, Wednesday. The won-dollar exchange rate closed at 1,554.9, up 5.5 won from the previous session, while the benchmark KOSPI ended 2.04 percent lower at 8,303.41. Yonhap
By Lee Yeon-woo
The Korean won weakened to 1,559 per dollar in intraday trading Wednesday, showing little sign of stabilizing despite suspected intervention by currency authorities.
The won-dollar exchange rate closed at 1,554.9 in Seoul's onshore trading, up 5.5 won from the previous session, marking the local currency's weakest close since March 2009 during the global financial crisis.
The rate opened at 1,549.8 and breached the closely watched 1,550 level during the session, climbing as high as 1,559 before paring gains amid dollar-selling by exporters and caution over possible official intervention.
Foreign exchange authorities spent a record $22.4 billion in the fourth quarter of 2025 and another $13.6 billion in the first quarter of this year to help support the won. Still, broad dollar strength driven by the Federal Reserve’s hawkish outlook, coupled with the won’s tendency to track weakness in the yen, is putting renewed upward pressure on the exchange rate.
Foreign selling in Korean equities is adding to pressure on the currency. Overseas investors net sold 148 trillion won of KOSPI-listed shares in the first half, a record high, according to Kiwoom Securities. They sold a net 1.7 trillion won on Wednesday, extending their selling streak to a ninth session.
"Until a clear turning point toward a weaker dollar emerges, domestic supply-demand pressures are likely to persist, making elevated exchange-rate levels in the 1,500 won range unavoidable," said Moon Da-woon, an analyst at Korea Investment & Securities. "If the rate breaks through the previous high of 1,560, there is no obvious resistance level, and the topside should be kept open toward the big figure of 1,600."
Meanwhile, the benchmark KOSPI reversed an earlier gain to close 2.04 percent lower at 8,303.41. Samsung Electronics fell 5.84 percent, while SK hynix lost 3.4 percent.
Profit-taking in major semiconductor stocks deepened, accelerating a broader sector rotation, according to Daishin Securities.
Power equipment shares advanced on continued demand for power infrastructure. LS ELECTRIC rose 10.7 percent, while Hyosung Heavy Industries gained 8.14 percent.
Cosmetics stocks also rose, supported by stronger export momentum as overseas demand continued to boost earnings. APR climbed 5.84 percent, while Amorepacific rose 7.47 percent.
Defense shares gained as investors hunted for bargains. Hanwha Aerospace rose 9.65 percent, LIG Defense & Aerospace gained 7.09 percent and Hyundai Rotem advanced 9.71 percent.
The secondary Kosdaq market closed 1.44 percent higher at 929.35 after the government reaffirmed plans to restructure the market at a ceremony marking its 30th anniversary.