US Treasury Finds South Korea Won Weakness Inconsistent With Economic Fundamentals
The US Treasury placed South Korea on its monitoring list after finding recent won depreciation inconsistent with fundamentals while noting no currency manipulation.
Insights:
The United States 
USTreasury stated in its semi-annual currency report that the recent depreciation of the South Korean 
KRwon was not in line with the nation's strong economic fundamentals. The report, which covers the period from the last half of 2024 through the first six months of 2025, placed South Koreaon a monitoring list requiring close attention. However, the Treasury did not accuse South Koreanauthorities of currency manipulation, noting that no major trading partner met all three criteria for enhanced analysis during the review period.
USTreasury stated in its semi-annual currency report that the recent depreciation of the South Korean KRwon was not in line with the nation's strong economic fundamentals. The report, which covers the period from the last half of 2024 through the first six months of 2025, placed South Koreaon a monitoring list requiring close attention. However, the Treasury did not accuse South Koreanauthorities of currency manipulation, noting that no major trading partner met all three criteria for enhanced analysis during the review period.The won closed at 1,434.0 per dollar on Thursday. This follows a period of significant volatility where the currency faced acute depreciation pressures in the fourth quarter of 2024. These pressures emerged after the South Koreancentral bank reduced its policy rate in November 2024 and occurred amid the onset of domestic political instability. The currency saw further depreciation in late 2025, prompting South Koreanauthorities to roll out measures in December to bolster the currency as it slumped toward the 1,500 per dollar level.
