The Korean won, which had strengthened sharply in tandem with the yen’s surge, reversed course just a day later, with the dollar-won exchange rate rebounding to the 1,450 KRW range after the Trump administration announced new tariff measures.
According to the Seoul foreign exchange market on Tuesday, the dollar-won rate opened at 1,450.0 KRW, up 9.4 KRW from the previous close. As of 9:32 a.m., the rate was trading at 1,451.9 KRW.
On the previous trading day, Monday, the dollar-won rate had closed at 1,440.6 KRW, down 25.2 KRW from the prior session. The yen gained strength alongside the won amid growing expectations that the United States and Japan had intervened to curb excessive yen weakness.
However, on Monday, President Trump declared that South Korea was not adhering to its trade agreement, announcing plans to impose mutual, item-specific tariffs. This heightened uncertainty led to the exchange rate rising again.
In a post on his social media platform, Truth Social, Donald Trump said that the trade agreement was vital to the United States and that tariffs had been swiftly reduced as agreed under the deal.
He added that the United States expected its trading partners to reciprocate, while criticizing the South Korean National Assembly for failing to properly implement the trade agreement with the United States.
Trump further said that he and South Korean President Lee Jae Myung had signed an excellent trade agreement benefiting both countries on July 30, 2025, and that he had reaffirmed its details during his visit to Korea on October 29, 2025, questioning why the South Korean National Assembly had yet to approve the agreement.
He went on to announce that, as a result, he would raise tariffs on automobiles, lumber, pharmaceuticals, and all other mutual tariffs from 15% to 25%, citing the National Assembly’s failure to legislate what he described as a historic trade agreement.
Min Kyung Won, a researcher at Woori Bank, said the tariff issue was likely to have a negative impact on the domestic stock market and act as a bearish factor for the won.
Lee Min Hyuk, a researcher at KB Kookmin Bank, noted that Trump’s planned 25% tariff increase on South Korea, combined with potential regional buying pressure, could further amplify upward movement in exchange rates. He added, however, that external factors such as concerns over U.S.–Japan cooperation and the risk of a U.S. government shutdown were expected to keep the dollar in a weak environment.