Korean won dips to lowest level since global financial crisis amid Trump tariff woes

The South Korean currency sank to the lowest level in 16 years against the U.S. dollar Wednesday as investors fret about the impact of the U.S.’ sweeping tariffs and a global trade war on its export-driven economy.

The Korean won was quoted at 1,484.1 won against the greenback at 3:30 p.m., down 10.9 won from the previous session.

The reading marks the lowest level since March 12, 2009, when the local currency was quoted at 1,496.5 won as the country was grappling with the aftermath of the global financial crisis.

The won opened at 1,471.0 won, down 3.2 won from the previous session, and had dipped to as low as 1,487.55 won during intraday trading.

The stock market also tumbled, with the benchmark Korea Composite Stock Price Index (KOSPI) falling to the lowest closing since October 2023.

The won’s weakness came as U.S. President Donald Trump announced plans last week to impose reciprocal tariffs on imports from most of the world, including 25 percent duties on South Korean goods.

The country-specific tariffs take effect in the day, while a 10 percent baseline tariff on foreign imports went into force Saturday.

Trump also warned of additional 50 percent tariffs on China if Beijing does not withdraw its retaliatory 34 percent tariffs against his country, stoking fears of a trade war between the world’s two largest economies.

The Bank of Korea (BOK) and the government have vowed to implement market stabilization measures swiftly when necessary, warning that the foreign exchange and the financial markets could face heightened volatility for a longer-than-expected period.