Authorities step in verbally to slow slide of weakening won

Foreign exchange authorities said Wednesday that an excessively weak won is not desirable in the latest verbal intervention to tame the local currency against the U.S. dollar.

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2025 December 24 . 9:19 AM

1 min read

In this picture, we see the coin in gold and brown color. We see some text written as "The United... — In this picture, we see the coin in gold and brown color. We see some text written as "The United States Of America". It might be a money coin. In the background, it is brown in color and it looks like a carpet.

Authorities step in verbally to slow slide of weakening won

South Korea’s currency, the won, has fallen sharply in recent days. On Tuesday, it dropped below 1,460 against the US dollar for the first time since late November. The decline triggered a swift response from financial authorities aiming to stabilise the exchange rate.

The government took action after the won weakened past 1,480 earlier this month. Officials from the Ministry of Economy and Finance and the Bank of Korea (BOK) held emergency meetings before issuing a joint statement. They emphasised their determination and ability to address the currency’s slide.

To support the won, the BOK temporarily removed the foreign exchange stability levy. It also agreed to pay interest on banks’ excess foreign currency reserves from January to June. The move aimed to ease pressure on the currency by encouraging institutions to hold more won.

Separately, the National Pension Service (NPS) extended its foreign exchange hedging programme. Under the leadership of Kim Chang-won, whose term was renewed last November, the NPS also prolonged a $65 billion swap deal with the BOK until the end of 2025. These steps were designed to reduce volatility and strengthen market confidence.

Foreign exchange authorities later clarified that an overly weak won was undesirable. Their comments signalled a commitment to preventing further sharp declines.

The won’s recent drop below 1,460 marks its lowest point since November 26. The government’s measures, including hedging extensions and interest incentives, aim to steady the currency. Authorities have made clear they will continue monitoring and intervening if necessary.