The South Korean won weakened to around 1,451 per dollar, nearing a two-week low, as the greenback strengthened amid escalating geopolitical tensions in the Middle East. The currency’s decline followed comments from President Donald Trump indicating that US military operations in Iran would continue until strategic objectives are achieved.
In response, Finance Minister Koo Yun-cheol convened an emergency meeting, cautioning that mounting military tensions could increase volatility in global financial and energy markets. He emphasized South Korea’s heavy dependence on Middle Eastern energy supplies and expressed concern over potential instability in the Strait of Hormuz, a critical chokepoint for global oil shipments.
Despite these external risks, domestic economic fundamentals offered some support. South Korea’s exports jumped 29% year-on-year in February to $67.45 billion, the highest value ever recorded for that month, largely driven by strong semiconductor demand amid the ongoing artificial intelligence boom.
