The South Korean won fell to 1,428.50 per U.S. dollar on January 13, 2026, marking its weakest level since 2009 and intensifying scrutiny on the Bank of Korea’s ability to defend currency stability. Market participants are closely watching for signs of government intervention as foreign exchange reserves decline.
- Won reached 1,428.50 per USD on January 13, 2026—the weakest level since 2009
- Bank of Korea foreign exchange reserves declined by over $12 billion in December 2025
- Speculative short positions in the won exceed $22 billion, the highest since 2014
- KOSPI index dropped 1.8% on January 13 amid currency weakness
- Policy rate remains at 3.5%, but market doubts its effectiveness without further action
- Export and import sectors face growing financial strain due to currency volatility
The South Korean won hit a 17-year low against the U.S. dollar, reaching 1,428.50 on January 13, 2026, according to interbank trading data. This depreciation reflects mounting pressure from widening interest rate differentials between Korea and major economies, particularly the United States, where the Federal Reserve maintained elevated rates into the new year. The move pushes the won further below its pre-2020 average of approximately 1,200, signaling deepening market stress. The Bank of Korea (BOK) has been actively defending the currency, utilizing foreign exchange reserves totaling $430 billion as of mid-January. However, cumulative outflows exceeded $12 billion in December alone, prompting concerns about reserve sustainability. With the BOK’s policy rate at 3.5%—its highest level since 2019—market participants question whether rate hikes alone can stem capital flight amid global risk aversion and strong demand for safe-haven currencies. Financial institutions across Seoul note that speculative short positions in the won have grown to their highest levels since 2014, with derivative exposure exceeding $22 billion. Analysts warn that if the currency breaches 1,450, it could trigger forced hedging mechanisms and deepen volatility across equity, debt, and commodities markets. The KOSPI index dropped 1.8% on January 13 following the weak won, reflecting broader investor anxiety. The situation is drawing attention beyond domestic circles. Major export-oriented firms—particularly in semiconductors and automotive sectors—are facing increased input cost risks, while importers of raw materials such as crude oil and lithium face margin compression. The government has signaled readiness to consider coordinated interventions with regional partners should conditions deteriorate further.