SEOUL, December 09 (AJP) - South Korea’s currency plummeted to a two-year low last week as a political crisis, marked by President Yoon Suk Yeol’s declaration of martial law and the subsequent impeachment attempt, roiled the nation. The won’s decline reflects growing investor anxiety over the country’s future stability.
The South Korean won weakened 24.5 won against the dollar last week, its sharpest weekly drop since January. The currency has been under pressure for months, but the recent political turmoil accelerated its fall.
The crisis began on Dec. 3 when President Yoon declared a martial law and deployed troops to the National Assembly.
The move, which was widely criticized as the de facto coup, sent shockwaves through financial markets. Investors, fearing further political instability, rushed to sell the won and buy dollars.
The won’s decline has raised concerns about its impact on the South Korean economy. A weaker currency can lead to higher import costs, which can fuel inflation. It can also make it more difficult for South Korean companies to compete in global markets.
Analysts say that the long-term outlook for the won remains uncertain as the political crisis in South Korea is far from over.
The impeachment proceedings against President Yoon are still ongoing, and if the crisis deepens, the won could continue to weaken.
Copyright ⓒ Aju Press All rights reserved.
