The South Korean won weakened to around 1,420 per dollar on Friday, retracing earlier gains as sentiment softened after the IMF warned that US tariffs could weigh on South Korea’s medium to long-term growth prospects. Thomas Helbling, deputy director of the IMF’s Asia Pacific department, noted that while growth is expected to improve in the near term amid lower political uncertainty and policy support, rising tariffs and lingering uncertainty may gradually weigh on exports and momentum. However, the latest round of US-South Korea trade talks showed signs of progress in the shipbuilding project cooperation. Adding to the cautious tone, the Bank of Korea showed that import prices rose for a third straight month in September, driven by higher oil prices and a weaker currency. The figures point to persistent inflationary pressures from external factors and continued weakness in the won, despite export resilience, with import prices up 0.2% month-on-month, following a 0.3% rise in August.
