FX.co ★ South Korean Won Hits Weakest Level Since 2009

The South Korean won weakened beyond 1,500 per dollar, its lowest level since March 2009, as escalating tensions between the US and Iran unnerved global markets. Washington has given Tehran 48 hours to reopen the Strait of Hormuz, warning that failure to do so could prompt strikes on Iranian energy facilities. Iran, in turn, has threatened regional energy and water infrastructure and signaled it could close the strait if attacked. Risk-off sentiment has been intensified by foreign investors’ selling of Korean assets, with net outflows reaching 1.8 trillion won and adding persistent downward pressure on the currency. South Korea’s heavy dependence on imported energy heightens the economic impact of any spike in oil prices, while broader weakness across Asian markets—including steep declines in the KOSPI—has further fueled safe-haven demand for the US dollar. In response, the government and ruling party are drawing up a 25 trillion-won supplementary budget aimed at cushioning the economy from surging energy costs and providing support to vulnerable groups.