Economists say pressure from US-led AI boom reflects global capital shifts — not Korea-specific vulnerabilities — calling for measured policy responses
The Korean won is expected to remain under pressure throughout 2026 as it confronts a new set of forces reshaping global financial hegemony — most notably a US-led artificial intelligence boom that is drawing capital away from the rest of the world, experts said.
The year 2025 proved challenging for the won. The currency opened the year at 1,466.6 per dollar on Jan. 2, and struggled to hold its value amid political turmoil triggered by former President Yoon Suk Yeol's failed declaration of martial law in December 2024 and Yoon's subsequent impeachment.
On April 9, downward pressure on the won intensified with the US administration announcing a series of “reciprocal” tariffs, pushing the currency to weaken to 1,481.1 per dollar.
Throughout the year, the won seemed to regain strength, appreciating to 1,350 per dollar by June 30, supported by a softer dollar and improved risk sentiment
Continue Reading on The Korea Herald
This preview shows approximately 15% of the article. Read the full story on the publisher's website to support quality journalism.