The South Korean won weakened to around 1,466 per dollar, falling to its lowest level in seven months as sentiment was weighed down by persistent concerns over ongoing capital outflows. Investor caution deepened following the government’s clarification on Tuesday that the $350 billion investment plan with the US would take the form of a nonbinding memorandum of understanding, highlighting that the arrangement remains in its early stages. Market participants construed the statement as indicative that, although discussions on large-scale US investments are progressing, considerable uncertainty remains regarding the timing and scale of potential dollar outflows. Adding to the downward pressure, employment in the manufacturing and construction sectors continued to contract, while youth employment recorded its 18th consecutive month of decline, highlighting challenges for younger job seekers.
