Key facts
- The South Korean won has depreciated by 5.92% against the U.S. dollar in 2026.
- The won is one of the worst-performing major currencies.
- Foreign investors have sold off South Korean stocks.
- The total value of stock sell-offs by foreign investors is over 156 trillion won.
The South Korean won has experienced a significant depreciation against the U.S. dollar in 2026, dropping by 5.92%. This performance places the won among the worst-performing major currencies globally. The primary driver behind this decline is a substantial sell-off of domestic stocks by foreign investors. These investors have divested a total of over 156 trillion won from the South Korean stock market. This outflow of foreign capital has directly contributed to the weakening of the won, as demand for the currency decreases while demand for U.S. dollars increases. The scale of the sell-off indicates a loss of confidence or a strategic reallocation of assets by international investors away from South Korea. The trend suggests potential broader economic concerns or a shift in global investment strategies impacting emerging markets. The continued outflow could exert further downward pressure on the won if not counteracted by other economic factors or policy interventions.