Daijiworld Media Network – Seoul

Seoul, Feb 3: The South Korean won weakened significantly against the US dollar on Monday, driven by growing concerns over the impact of the Trump administration’s tariff plan on the South Korean economy. The won opened at 1,466 per dollar, marking a drop of 13.3 won from the previous session, and further weakened to 1,471.35 by 10 am, the lowest level for the year so far.

The won has been hovering near the 1,450 level since December, the weakest since the aftermath of the 2008 financial crisis, largely due to the strengthening US dollar and President Yoon Suk Yeol’s domestic political challenges. This comes in the wake of President Trump's announcement on Saturday to impose 25% tariffs on goods from Canada and Mexico, and 10% on Chinese goods, starting Tuesday. The tariffs are expected to harm South Korean companies with production bases in these countries.

The economic fallout was reflected in the stock market as well, with the Korea Composite Stock Price Index (KOSPI) dropping 2.24% within the first 15 minutes of trading. Key South Korean companies, including Samsung Electronics and LG Electronics, saw sharp declines, as did Hyundai Motor, Kia, and steelmaker POSCO Holdings, all of which are heavily impacted by the tariff measures and potential retaliations.