South Korea’s gold rush and won rebound after Trump’s Greenland bid
South Korea’s financial markets have seen notable shifts in recent weeks. Gold price has surged after US President Donald Trump’s controversial proposal to acquire Greenland. At the same time, euro to dollar exchange trends between the won and the dollar have reversed following government intervention to stabilise the local currency.
The sudden interest in gold began in early January 2026, when Trump’s announcement sparked geopolitical uncertainty. Korean investors rushed to buy the precious metal, pushing gold prices above $5,000 per ounce. By the end of the month, the total balance of gold trading accounts at major banks had climbed by 11.4 percent.
Currency exchange patterns have also changed sharply. Earlier spikes in dollar purchases late last year have now eased. The daily average exchange from won to dollar dropped by 50 percent compared to 2025, with this month’s total through Thursday standing at $364 million. Conversely, the daily average for dollar-to-won exchanges rose to $5.2 million, well above last year’s figures. The decline in dollar demand follows measures by foreign exchange authorities to steady the won. Corporate dollar deposits, which make up 80 percent of the total, fell by $2.6 billion. Overall, the total balance of dollar deposits at major banks has decreased by 3.8 percent since the end of last year.
The combination of geopolitical tensions and regulatory action has reshaped South Korea’s financial landscape. Gold remains a favoured safe-haven asset, while currency flows reflect reduced urgency for dollar holdings. Authorities continue monitoring the situation as markets adjust to the new conditions.
