Exchange Rate Near 1520 Won Amid Middle East Tensions; Authorities Warn of Action

The won-dollar exchange rate has climbed close to the 1520 won mark, prompting foreign exchange authorities to issue verbal interventions to stabilize the rate. This marks the highest level for the exchange rate since early last month.
On May 22, the Bank of Korea and the Ministry of Economy and Finance issued a joint statement just before the close of trading in the Seoul foreign exchange market, stating, "The foreign exchange authorities are monitoring the won-dollar exchange rate closely, as it appears to be excessive compared to fundamentals." They added, "We will take decisive action if necessary."
On that day, the exchange rate closed at 1517.2 won per dollar, an increase of 11.1 won from the previous session, marking the highest closing figure since May 2 (1519.7 won).
The exchange rate opened at 1504.7 won but quickly turned upward, increasing further in the afternoon. At one point, it reached 1519.4 won, nearing the 1520 won threshold. The intraday high was also the highest since May 2 (1524.1 won). The National Participation Growth Fund has generated explosive interest, selling out its online allocation on the first day of its launch. The fund, which invests in advanced strategic industries while offering tax benefits and loss buffers, has attracted many investors.
According to financial sources on May 22, all allocated amounts of the National Participation Growth Fund at the five major banks (KB Kookmin, Shinhan, Hana, Woori, and NH Nonghyup) have been exhausted. The total allocation for these banks was 220 billion won, with KB Kookmin receiving 65 billion won, Shinhan, Hana, and Woori each receiving 45 billion won, and NH Nonghyup receiving 20 billion won.
Customers flocked to bank branches to sign up, with reports of 'open runs' at some locations where customers waited before opening hours due to concerns about stock depletion.
Major securities firms, including Mirae Asset Securities, KB Securities, and Daishin Securities, also sold out their online allocations of the National Participation Growth Fund. With just 12 days until the June 3 local elections, the race for Seoul mayor has become extremely close. Recent polling shows Oh Se-hoon of the People Power Party leading Jung Won-o of the Democratic Party by a narrow margin.
According to a poll released on May 22, Oh Se-hoon garnered 44.8% support, while Jung Won-o received 42.0%. The gap between the two candidates is 2.8 percentage points, within the margin of error (±3.1 percentage points).
The survey, conducted by Research Well on behalf of New Daily from May 20 to 21, included 977 residents of Seoul aged 18 and older.
In this poll, Kim Seong-cheol of the Reform Party received 2.1%, while other candidates accounted for 2.6%. Additionally, 6.1% of respondents indicated they did not support any candidate, and 2.4% were unsure.
By gender, Oh Se-hoon showed strength among male voters, while Jung Won-o received relatively higher support from female voters. Among men, Oh Se-hoon led with 50.5% compared to Jung Won-o's 38.7%. Conversely, Jung Won-o had 45.0% support among women, while Oh Se-hoon received 39.6%.
Age demographics also revealed clear trends. Jung Won-o was favored among voters in their 40s and 50s, while Oh Se-hoon was strong among those in their 20s, 30s, and seniors over 70. Notably, Oh Se-hoon received 57.1% support among voters in their 30s and 51.2% among those over 70, while Jung Won-o had higher support in the 40s (58.5%) and 50s (57.7%). As voting begins on the tentative wage agreement for 2026 between Samsung Electronics management and labor, the union reported a turnout exceeding 66% on the first day, indicating strong engagement among members.
As of 8:25 PM on May 22, the voting rate for the Samsung Electronics union was recorded at 66.16%. The nationwide Samsung Electronics labor union's voting rate also reached 69.15%.
This vote is to determine approval of the 'tentative wage agreement for 2026' reached between management and labor on May 20. Voting will continue until the morning of May 27, and if a majority of members participate and approve, the agreement will be finalized.
The tentative agreement includes an average wage increase of 6.2%, the establishment of a special performance bonus for the semiconductor sector, and the introduction of a housing loan program of up to 500 million won.
Notably, the semiconductor division plans to allocate 10.5% of its operating profit for the special performance bonus, allowing employees in the memory division to potentially receive bonuses up to 600 million won when combined with existing excess profit bonuses. However, there is growing discontent among employees in the non-memory sectors, such as system LSI and foundry, who may receive bonuses around 210 million won, while the DX (Device Experience) division is expected to receive only 6 million won in company stock. Starbucks Korea has issued another apology following backlash over promotional language used during the May 18 Democratic Movement anniversary.
On May 22, Starbucks Korea released a statement in all stores, saying, "We sincerely apologize for the significant hurt caused to the spirits of the May 18 Democratic Movement and to the victims' families and the public."
Starbucks Korea clarified that the controversy was "entirely due to a mistake made during the operation of our online business" and distanced itself from store partners. They urged the public to refrain from criticizing the partners who strive to do their best every day.
Additionally, they expressed gratitude for any warm consideration shown to partners to ensure they can work in a safe environment.
The controversy arose when Starbucks Korea used phrases like 'Tank Day' and 'Bang! on the desk' during a tumbler promotion on May 18, leading to complaints directed at employees in stores. The additional apology appears to be an effort to protect staff from ongoing backlash.



* This article has been translated by AI.

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