Political turmoil pushes South Korean won to 16-year low

ISTANBUL

The South Korean currency, the won, hit its lowest level in nearly 16 years against the US dollar on Friday amid escalating political turmoil sparked by President Yoon Suk Yeol's martial law decree and his subsequent impeachment.

The won was trading at 1,467.5 per dollar, its weakest level since March 13, 2009, during the global financial crisis, when it stood at 1,483.5 won, according to news outlet Yonhap.

On Friday, the won started at 1,467.5 to the dollar and weakened to 1,486.7 won.

The stock market also saw significant declines, with heavy selling from foreign and institutional investors.

The Korea Composite Stock Price Index (KOSPI) fell 1.02%, closing at 2,404.77.

A deepening political crisis led South Korea’s National Assembly Friday to vote to impeach acting President Han Duck-soo, following his refusal to appoint judges to the Constitutional Court to preside over the impeachment trial of President Yoon Suk Yeol.

Previously, Yoon was impeached by parliament for his brief but alarming declaration of martial law on Dec. 3.

Since the martial law debacle, the South Korean won has remained significantly above the critical 1,400 won threshold, and Bank of Korea Governor Rhee Chang-yong has indicated that the currency is expected to hover around this mark for now.

Analysts say the won-dollar exchange rate might normalize next month, but there's also a risk of further depreciation, potentially dipping below 1,500 won, if political uncertainties persist.