South Korean Won Plunges to 16-Year Low, Prompting Government to Vow Crackdown on Illegal FX Trades

The South Korean won has depreciated significantly, falling past 1,560 per dollar to its weakest level since the 2008 global financial crisis. This plunge is attributed to corporate dollar hoarding, foreign investor selling of Korean equities, and broader dollar strength driven by expectations of potential U.S. interest rate hikes. In response, South Korean financial authorities held an an emergency meeting, with the Deputy Prime Minister vowing a crackdown on illegal foreign exchange transactions to stabilize the currency market.