21.01.202602:56:28UTC+00Korean Won Rebounds on Stability Plans

The South Korean won strengthened to approximately 1,471 against the dollar, bouncing back sharply from a four-week low as investor sentiment improved following government reassurances. President Lee Jae Myung indicated that policymakers anticipate the won returning to the 1,400 level within the next two months, highlighting that its recent weakness is influenced more by global market conditions than by domestic fundamentals alone. He emphasized that the government would continue to explore available measures to mitigate volatility, while also recognizing the challenges of stabilizing the currency using national policy alone. Further enhancing positive sentiment, Finance Minister Koo Yun-cheol announced on Wednesday a set of policy initiatives aimed at stimulating economic growth and addressing inequalities. As part of its economic plan through 2026, the government intends to initiate a revitalization of potential growth, increasing available funds to 1.7 trillion won from the previous 1 trillion won.