Korean Won Hits Record Low Against US Dollar in 2025

The local currency experienced its weakest annual average against the greenback ever recorded this year.

Apr. 11, 2026 at 6:00am

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A bold, minimalist illustration featuring overlapping triangles and rectangles in shades of blue, red, and yellow, conceptually representing the fluctuating value of the Korean currency.The dramatic decline of the Korean Won against the US Dollar in 2025 is illustrated through a striking geometric composition, capturing the economic turmoil in a visually striking manner.Los Angeles Today

The Korean Won's performance against the US Dollar in 2025 has been nothing short of dramatic. Data reveals that the local currency experienced its weakest annual average against the greenback ever recorded this year, hitting a record low of 1,422.16 won per dollar in onshore trading. This marks a significant decline from the previous yearly low of 1,398.39 won set during the Asian financial crisis in 1998. The trend continued into the final trading session of the year, with the won closing at 1,439 per dollar, a 9.2 won drop from the previous session.

Why it matters

This development raises important questions about the future of the Korean economy and its currency. Will the won continue its downward spiral? What measures can the government take to stabilize the currency? These are crucial questions that investors and policymakers alike are grappling with as they navigate this turbulent period.

The details

The answer to the won's plunge lies in a combination of factors. Firstly, political turmoil within South Korea has likely contributed to investor uncertainty. Secondly, local investors have been increasingly investing in overseas stocks, further putting pressure on the won. These factors, coupled with broader economic challenges, have created a perfect storm for the currency's depreciation.

  • The won hit a record low of 1,422.16 per dollar in onshore trading in 2025.
  • The previous yearly low of 1,398.39 won per dollar was set during the Asian financial crisis in 1998.
  • The won closed at 1,439 per dollar in the final trading session of 2025, a 9.2 won drop from the previous session.

The players

South Korea

The country whose currency, the Korean Won, experienced a record low against the US Dollar in 2025.

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The takeaway

This case highlights the significant challenges facing the Korean economy and its currency, the won, as it grapples with political uncertainty, investor behavior, and broader economic headwinds. Policymakers will need to carefully navigate this turbulent period to stabilize the won and ensure the long-term health of the Korean economy.