{ "success": true, "data": { "id": 1634637, "msgid": "south-korean-won-falls-to-weakest-level-in-17-years-whats-the-situation-in-korea-1774443079", "date": "2026-03-25 19:30:32", "title": "South Korean Won Falls to Weakest Level in 17 Years, What's the Situation in Korea?", "author": "", "source": "CNBC", "tags": "", "topic": "Finance", "summary": "The South Korean won has depreciated to its weakest level against the US dollar in 17 years, closing at KRW 1,517.3 per dollar amid escalating Middle East conflicts that drive investors towards safe-haven assets. Foreign investors have sold off approximately US$13.5 billion in Korean stocks this March, exacerbating the currency's decline, while surging oil prices due to supply disruptions threaten Korea's economy as a net energy importer, potentially leading to higher inflation and slower growth.", "content": "

Jakarta, CNBC Indonesia - The exchange rate of the South Korean won\ntemporarily reached its weakest level in 17 years against the US dollar.\nAccording to Refinitiv data, the South Korean won closed down 1.38% at\nKRW 1,517.3\/US$ on Wednesday\u2019s trading (18\/3\/2026). That level became\nthe weakest since March 2009, or the worst in the last 17 years.\nPressure on the won emerged amid escalating conflicts in the Middle\nEast, which prompted global market participants to exit risk assets and\nshift to the US dollar as a safe-haven asset. Nevertheless, in its last\ntrading close on Tuesday (24\/3\/2026), the won remained in the red zone,\nclosing depreciated by 0.63% at KRW 1,496.03\/US$. Over a longer period,\nviewed over the past 12 months, the won has also recorded a 1.98%\nweakening against the US dollar. Reasons for the Won\u2019s Weakness One of\nthe main causes of the South Korean won\u2019s weakening is the increasing\nrisk-off sentiment in global markets. When geopolitical tensions heat\nup, investors tend to avoid risky assets and move funds to instruments\nconsidered safer, particularly the US dollar. This condition increases\ndemand for the dollar, while Asian currencies, including the won, are\nalso pressured. In addition to the safe-haven factor, the won is also\npressured by the heavy outflow of foreign capital from the South Korean\nstock market. Throughout March, foreign investors recorded net selling\nin the South Korean stock market of around US13.5b<\/em>i<\/em>l<\/em>l<\/em>i<\/em>o<\/em>n<\/em>,\u2006e<\/em>q<\/em>u<\/em>i<\/em>v<\/em>a<\/em>l<\/em>e<\/em>n<\/em>t<\/em>t<\/em>o<\/em>R<\/em>p<\/em>152.01t<\/em>r<\/em>i<\/em>l<\/em>l<\/em>i<\/em>o<\/em>n<\/em>(a<\/em>s<\/em>s<\/em>u<\/em>m<\/em>i<\/em>n<\/em>g<\/em>a<\/em>n<\/em>e<\/em>x<\/em>c<\/em>h<\/em>a<\/em>n<\/em>g<\/em>e<\/em>r<\/em>a<\/em>t<\/em>e<\/em>o<\/em>f<\/em>R<\/em>p<\/em>11,\u2006260\/U<\/em>S<\/em><\/span>).\nThis selling action adds further pressure on the won, as funds from\nstock disposals are generally converted to US dollars before exiting the\ndomestic market. The foreign fund outflow occurred alongside growing\nmarket concerns about the impact of the war in the Middle East on global\nenergy supplies. Foreign selling actions were heavily concentrated on\ntechnology stocks that had previously recorded significant gains thanks\nto the artificial intelligence (AI) boom. When leading Korean stocks are\nsold off by foreign investors, the pressure is not only felt in the\ncapital market but also spills over to the won\u2019s exchange rate.\nMoreover, energy supply disruptions have caused oil prices to surge\nsharply, triggering concerns about an oil shock and the risk of\nstagflation, a condition where inflation remains high amid economic\nslowdown. This sentiment is bad news for South Korea, which is a net\nenergy importer. Rising oil prices could enlarge the import burden,\ndrive inflation, and pressure economic growth prospects. In other words,\nthe won\u2019s weakening is not only triggered by the strengthening US dollar\nbut also by concerns that the energy price surge will burden South\nKorea\u2019s domestic economy. Thus, the weakening of the South Korean won\noccurs due to a combination of several factors at once, from the\nincreasing demand for the US dollar as a safe asset, the outflow of\nforeign funds from the stock market, the oil price surge due to the\nMiddle East conflict, to concerns about South Korea\u2019s economic prospects\nas an energy-importing country.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/south-korean-won-falls-to-weakest-level-in-17-years-whats-the-situation-in-korea-1774443079", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }