Leadership Void Triggers Exchange Rate Spike: KRW-USD Tops 1,436 Won

# Rising Currency Volatility Triggered by Resignations of South Korean Officials The simultaneous resignation of former Prime Minister Han Duk-soo and former Deputy Prime Minister for Economic Affairs and Finance Minister Choi Sang-mok on November 1 has sparked concerns over the South Korean won-US dollar exchange rate, which recently showed signs of stabilization but now faces the potential for renewed upward pressure. In response to these resignations, an economic leadership vacuum has emerged. Deputy Prime Minister for Social Affairs and Minister of Education Lee Ju-ho has been appointed Acting President, taking effect at midnight on November 2. The Korean won opened at 1,436.0 won against the US dollar on November 2 in the Seoul foreign exchange market, a rise of 15.0 won from the October 30 closing price of 1,421.0 won. During intraday trading, the exchange rate hovered in the mid-to-high 1,430 won range. The won's depreciation was linked to a combination of domestic political uncertainties and the sustained strength of the US dollar in global markets. This unprecedented "substitute for a substitute acting president" scenario is expected to persist until the presidential election scheduled for June 3. Continuing political uncertainty is likely to cause foreign investors to either withdraw funds from South Korean markets or adopt a wait-and-see stance. The abrupt resignation of Choi Sang-mok has particularly raised concerns over the weakening capacity of South Korea’s economic policymaking. Analysts noted that responses to both domestic and international challenges—such as persistent sluggishness in domestic demand and increasing US tariff pressures—are likely to face significant hurdles. Market analysts emphasized the interplay of domestic political risks and global macroeconomic factors. The strengthening of the US dollar, driven by progress in US-China trade negotiations and strong earnings reports from US tech giants, has added further pressure on the South Korean currency. Meanwhile, US stock markets closed higher across the board, fueled by robust earnings from major tech firms such as Microsoft and Meta Platforms. On November 1 (local time), the Dow Jones Industrial Average rose 83.60 points, or 0.21%, to close at 34,752.96. The S&P 500 climbed 35.08 points, or 0.63%, and the Nasdaq Composite surged by 264.40 points, or 1.52%, marking a strong trading session on Wall Street.