The South Korean won depreciated to around 1,472 on Monday, approaching its lowest level in more than seven months, as market sentiment remained pressured by concerns of continued capital outflows. The currency’s weakness has also been reflected in its real effective exchange rate, which dropped to 89.09 in October, marking its lowest level in roughly 16 years. Analysts warn that Korea’s growing shift toward foreign assets, particularly US equities, is increasing the won’s vulnerability amid a broadly strong dollar and risk averse global conditions. Some institutions are forecasting further depreciation, with one major brokerage projecting the won could fall to the mid-1,500s in 2026 due to a steadily expanding pipeline of capital moving abroad and muted domestic demand. Exposure to overseas markets has surged sharply, as trading volumes in foreign shares by Korean investors jumped to $530.84 billion last year, with this year’s total reaching $466.19 billion by September.
