Korean won rebounds after president signals KRW–USD range

An electronic display at a currency exchange office in Myeong-dong, Seoul, shows the exchange rates on Jan. 21, 2026. Yonhap.

SEOUL, January 21 (AJP) - The Korean won, which briefly revisited the perceived government defense line of 1,480 per dollar before markets opened Wednesday, rebounded sharply after President Lee Jae Myung publicly referred to a specific range for the exchange rate.

During a televised New Year’s press conference, Lee addressed the won’s prolonged weakness, noting that the depreciation was not “a uniquely Korean phenomenon” but reflected broader geopolitical and global currency trends.

Some market participants have described the won’s recent level around 1,470 per dollar as a “new normal,” Lee said. He added that if the Korean currency were strictly moving in line with the Japanese yen against the dollar, it would be trading closer to 1,600 won.

President Lee Jae-myung answers questions from reporters during a New Year’s press conference at the Blue House guest house in Seoul on January 21. Yonhap.

Lee said authorities are continuing to explore measures to stabilize the currency, adding that officials expect the dollar-won rate to fall toward the 1,400 range within one to two months, though he did not specify the basis for the forecast.

The president’s reference to a specific range had an immediate impact on the market. The dollar fell 11.1 won to 1,468.7 won in afternoon trading.

“If there had been a quick fix, we would have already used it,” Lee said. “The government is implementing many useful policies that it can. But at the end of the day, the market is determined by supply and demand.”

The won averaged a record-low 1,423.32 per dollar last year and has remained under pressure since the start of this year amid strong global demand for U.S. assets and lingering uncertainty over South Korea’s foreign exchange outlook.

Concerns have also persisted over Seoul’s commitment to invest $350 billion in the United States under a sweeping tariff agreement with Washington. While the pledge has eased trade tensions, uncertainty over how the government will deliver the roughly $20 billion in annual funding has weighed on the local foreign-exchange market, according to a trader at SK Securities.

U.S. officials are expected to visit Seoul as early as next month or in March to discuss the details of the investment framework, the trader said.
Kim Yeon-jae Reporter duswogmlwo77@ajupress.com

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