FX.co ★ South Korean Won Slides Further

The South Korean won weakened to around 1,480 per dollar, falling for a third consecutive session as renewed trade tensions and higher oil prices pressured market sentiment. The United States has launched a Section 301 investigation into several major economies, including South Korea, China, and Japan, to examine alleged unfair trade practices linked to excess manufacturing capacity. The inquiry could result in new tariffs or trade restrictions on export-oriented sectors such as electronics, automobiles, machinery, steel, and shipbuilding, heightening concerns over South Korea’s export outlook and trade surplus. Investor caution was also reinforced by volatility in energy markets, as the conflict in the Middle East continued to disrupt shipping near the Strait of Hormuz. At the same time, authorities have moved to stabilize supply through a coordinated emergency oil release led by the International Energy Agency, with contributions from the United States and South Korea.