In December, foreign currency deposits increased to $101.3 billion, driven by corporate demand for dollar holdings.
A exchange rate approaching dangerously close to 1,500 won to the dollar is inflicting strain on the average household and putting pressure on the central bank to act despite its focus on boosting domestic demand.
The Kospi shed 0.55 points, or 0.02 percent, to close at 2,398.94, with the expected arrest of President Yoon Suk Yeol on insurrection charges weighing on the economy.
The average won-dollar exchange rate during the fourth quarter of last year hit a record high at 1,398.75, according to data released by the Bank of Korea, the highest level since the first quarter of 2009.
The Korean won plummeted to breach the 1,480 won per dollar mark for the first time since the global financial crisis of 2009, and the benchmark stock index dipped below the 2,400 threshold amid heightened political chaos.
The Korean won plummeted further on Friday, breaching the 1,470 won per dollar mark amid escalating political turmoil.
The Korean won continued to plummet to close at 1,464.8 to the dollar as the Democratic Party moved to impeach acting President Yoon Suk Yeol, aggravating the impact of political uncertainties on the economy.
People stand in line at a currency exchange shop in the Myeong-dong area of Jung District, central Seoul, on Dec. 24.
The Korean government issued a verbal intervention Thursday against excessive fluctuations in the local currency after the won sharply depreciated following the U.S. election.
Korean stocks retreated on Wednesday with EV shares plunging as Donald Trump pulled ahead, and eventually declared victory, in the U.S. presidential race.
Korea JoongAng Daily Sitemap
