South Korean won hits 16-year low amid tariff fears

The South Korean currency fell to a 16-year low against the dollar on Wednesday, amid investor concerns about the impact of tariffs and the global trade war on the export-dependent Korean economy.

The Korean won traded at 1,484.1 won against the dollar, down 10.9 won from the previous session and its lowest level since March 12, 2009, when the local currency traded at 1,496.5 won as the country grappled with the effects of the global financial crisis. The won opened at 1,471.0 won, down 3.2 won from the previous session, and fell to a low of 1,487.55 won during today’s trading. Stock markets also declined, with the main Kospi index falling to its lowest closing level since October 2023.

These currency movements came as US President Donald Trump announced plans to impose tit-for-tat tariffs on imports from most parts of the world, including a 25 percent tariff on South Korean goods.

The country-specific tariffs took effect today, while the basic 10 percent tariff on foreign imports took effect on Saturday.