South Korean won plunges amid political crisis

The South Korean won's exchange rate against the US dollar fell to a two-year low earlier this week as the political crisis continued.

The won exchange rate against the USD and the KOSPI index at a bank in Seoul on December 9 - Photo: REUTERS

The South Korean won fell to its lowest level against the US dollar in more than two years on December 9, as the country's political crisis deepened following a brief martial law imposed by President Yoon Suk Yeol last week.

Specifically, the won was listed at 1 USD for 1,437 won, down 17.8 won from the previous session. This is the lowest level since October 24, 2022.

The won has remained well below the closely watched 1,400 won level in recent sessions. It was the worst performer among major currencies last week, falling 1.86 percent against the dollar.

The South Korean stock market also plunged in the trading session on December 9, with the KOSPI index falling 2.78%, equivalent to 67.58 points, to 2,360.58 points - the lowest level since November 2023.

The KOSPI's decline had a broad-based impact, with shares of major companies such as Samsung falling 1.29 percent to 53,400 won, or Hyundai Motor falling 1.23 percent to 201,000 won.

Energy-related companies were also hit hard, with SK Innovation down 4.47 percent and Korea Zinc down 15.33 percent. Financial stocks such as KB Financial and Shinhan Financial also posted declines.

However, some stocks, including chipmakers SK Hynix and Hyundai Mobis, performed mixed, rising 1.08% and 2.53%, respectively.

Retail investors sold a net 888.9 billion won worth of stocks, while institutional and foreign investors bought a net 794.3 billion won.

Amid a gloomy outlook for South Korea's currency and stock markets, the country's financial authorities have pledged to mobilize all available resources and quickly take bold steps if necessary to counter excessive market volatility.

South Korea's Finance Ministry plans to roll out a series of structural measures later this month to improve foreign exchange liquidity and inflows.

The weakening of the won and the South Korean stock market comes amid a political crisis triggered by President Yoon Suk-yeol's martial law. An investigation into the incident is underway, with the latest development on December 9 being the South Korean Justice Ministry imposing an exit ban on Mr. Yoon.

Faced with the above situation, South Korean Foreign Minister Cho Tae Yul emphasized the need for diplomatic efforts to maintain international trust, especially with the US and Japan, to ensure national security, economy and stability.

Source: https://tuoitre.vn/dong-won-cua-han-quoc-lao-doc-vi-khung-hoang-chinh-tri-20241209193418604.htm