Won-dollar exchange rate

In plain terms

If the rate moves from 1,300 to 1,400 won per dollar, buying one dollar costs 100 won more. The won has lost value, so this is called a weaker won. A rising number means a weaker currency, which is easy to mix up.

Why it matters

South Korea depends heavily on trade, so the exchange rate quickly affects households and corporate earnings. The main drivers are the gap between US and Korean interest rates, the dollar's overall strength (the dollar index), foreign investors' buying and selling of Korean stocks, and global risk appetite.

How it connects to markets

• A weaker won (higher rate): exporters' profits in won terms tend to rise, while import and fuel prices climb; when it reflects foreign outflows, it weighs on the KOSPI
• A stronger won (lower rate): steadier import prices, often alongside foreign inflows into Korean stocks
• The won often moves together with the Chinese yuan, so it is sensitive to news about China's economy