The South Korean won held steady around 1,440 per dollar on the first trading day of 2026, as investors digested remarks from the Bank of Korea’s governor. BOK Governor Rhee Chang-yong said the won remains “misaligned” with economic fundamentals, warning that persistent depreciation could heighten inflation and weigh on domestic-oriented firms. He emphasized that the central bank would block any US-bound investments that risk FX stability under the recently finalized Seoul-Washington trade deal, which caps annual outflows at $20 billion, and urged the National Pension Service to review its overseas investment strategies. Authorities are using temporary tax exemptions to attract foreign capital back into local equities and direct dollar sales by the NPS. Strong trade performance is also underpinning the won, with 2025 exports hitting a record $709.7 billion, led by semiconductors and automobiles. December alone generated a $12.2 billion trade surplus, contributing to FX inflows.
