US dollar: In the midst of political unrest and a rise in local investors’ foreign stock purchases, the local currency recorded its lowest yearly average versus the US dollar this year, according to statistics released on Wednesday.

According to market statistics, the won averaged 1,422.16 won against the US dollar in onshore trade in 2025, which is the lowest figure ever recorded, according to the Yonhap news agency.

When South Korea was struck by the Asian financial crisis in 1998, the previous record annual low of 1,398.39 won was established.

The won was quoted at 1,439 per dollar on Tuesday, the last trading session of the year, a decrease of 9.2 won from the previous session.

The won has increased by 33.5 won from a year ago, when the nation was experiencing political unrest brought on by then-President Yoon Suk Yeol’s surprise imposition of martial rule.

On April 9, the won fell to an annual low of 1,484.1 per dollar, and on June 30, it reached its highest level of 1,350.

Prior to declining to 1,450.98 won in the fourth quarter, the quarterly average was 1,452.66 won in the first, 1,404.04 won in the second, and 1,385.25 won in the third.

The political unrest that followed the declaration of martial rule and Yoon’s impeachment, the ongoing interest rate differential between South Korea and the US, and the rise in demand for dollars from retail investors’ foreign stock investments all contributed to the won’s dramatic decline this year. In June, Lee Jae Myung was chosen as the next president of South Korea.

international exchange regulators responded to the currency volatility by enacting a number of measures, such as temporarily exempting investors who sell international equities and purchase domestic shares from paying capital gains tax.

To deter excessive dollar hoarding, the government also relaxed supervision regulations on banks’ foreign currency liquidity stress tests.

While officials made unusually forceful rhetorical interventions in the market, the National Pension Service (NPS) engaged in systematic currency hedging.In its monetary and credit policy operational guidelines for the next year, released last week, the Bank of Korea (BOK) said, “To address excessive herd behavior, we will actively implement market stabilization measures and strengthen market monitoring.”The introduction of 24-hour trading in the foreign exchange market and regulatory reforms pertaining to the offshore use of the Korean won in transactions among nonresidents are just two examples of the institutional improvements that the BOK will pursue to improve accessibility for foreign investors. The BOK will also intensify efforts to address structural imbalances in foreign exchange supply and demand, the statement continued.

In order to increase the nation’s ability to withstand external shocks and fortify regional financial safety nets, the central bank further promised to work toward extending currency swap agreements and engage in active dialogue with partner nations.