UPDATE: South Korean companies are bracing for a new normal as the Korean won continues to weaken, with experts predicting an exchange rate above 1,400 won per dollar for 2026. A recent survey conducted by The Korea Economic Daily between November 17 and 19, 2025, shows that 58.7% of treasury and foreign exchange specialists expect this trend to persist, intensifying calls for regulatory reforms to stabilize the currency market.
The won closed at 1,465.6 won per dollar on November 19, down 0.3 won from the previous day. This decline impacted the benchmark Kospi stock index, which fell 0.6% to 3,929.51, while the Kosdaq dropped 0.8% to 871.32. The ongoing volatility has led to concerns about the macroeconomic implications for Asia’s fourth-largest economy.
Two-thirds of survey respondents believe that the weak-won era is becoming entrenched, primarily driven by a surge in outbound investments and the growing appetite for US stocks. The Bank of Korea reported that the nation’s external financial assets reached a record $2.8 trillion by the end of September 2025, with overseas securities investment skyrocketing by $89 billion in just three months.
Kim Jong-deok, CFO at Daehan Shipbuilding, emphasized that Korea’s weakening growth potential has solidified the current dollar-won exchange rate as a new reality. “There’s no clear catalyst to lift the won,” he stated, reflecting a sentiment shared by many industry leaders.
Adding to the urgency, experts warn that the long-held belief that a weaker won enhances export competitiveness is now a myth. About 61.8% of respondents indicated that an exchange rate above 1,400 won is detrimental to the Korean economy. The traditional formula for growth is breaking down, as rising import costs due to currency depreciation are eroding profit margins rather than boosting exports.
Hwang Jae-seon, a team leader at Samyang Roundsquare, noted that increasing input costs are likely to lead to broader inflation, further straining household spending. “We’re in a situation where there is no clear floor for the won,” warned a treasury manager from a major conglomerate, highlighting the pervasive uncertainty affecting the economy.
In response to these challenges, 48.5% of survey participants called for easing regulations and enhancing labor-market flexibility to encourage corporate investment back onshore. The surge in overseas direct investment, which reached a record $34.57 billion last year, underscores the need for improved domestic conditions to prevent further capital flight.
Analysts are urging policymakers to reinforce economic fundamentals. 35.1%
