South Korea’s finance ministry and central bank said on May 22 they are closely monitoring the dollar-won exchange rate and would take decisive actions if necessary [1, 2]. Authorities described recent moves in the won as excessive relative to economic fundamentals in a joint statement [1, 2].
The won declined 0.7% against the dollar on Friday, marking it as Asia’s worst-performing currency that day [2]. The verbal intervention, delivered via text message to market participants, was the first since December 2025 [2]. Authorities have not specified what market actions might follow but emphasized readiness to act if the won’s swings threaten economic stability.
The joint warning represents a rare direct communication from South Korean officials seeking to curb volatile currency moves they consider disconnected from underlying economic conditions. The authorities did not provide further details on potential timing or measures.
The finance ministry and central bank said market participants should interpret the message as a clear signal of their intent to "take decisive actions if necessary," underscoring the seriousness of their market surveillance [1]. The won’s recent weakness reflects broader regional pressures but raised concern inside Seoul.
South Korean policymakers last issued such a verbal intervention in December 2025, highlighting the unusual nature of the latest message [2]. The government’s active monitoring signals close attention to external factors driving won moves.
Officials will continue tracking exchange rate trends and assess if further steps are needed to stabilize the won amid ongoing market volatility [1, 2].
