▲ Officials work at a dealing room of Hana Bank in Seoul on March 12, 2026. (Yonhap)

BOK-currency outlook

Current account surplus expected to ease downward pressure on Korean won: BOK

SEOUL, March 12 (Yonhap) -- South Korea's current account surplus is expected to gradually ease downward pressure on the local currency as the country's dollar supply improves, a central bank report showed Thursday.

According to the Bank of Korea's (BOK) latest biannual monetary policy report, the Korean won depreciated 5.2 percent against the U.S. dollar as of Feb. 25 from end-June last year.

Among regional currencies, the Japanese yen posted the sharpest decline, falling 7.9 percent, followed by the Taiwan dollar, which depreciated 6.7 percent, while the Chinese yuan was the only currency to appreciate, rising 4.4 percent.

The BOK said such differences were caused by economic growth and other fundamentals, foreign exchange policies and supply-demand balances of each nation.

Looking ahead, the U.S. dollar is projected to show a generally weaker trend, while regional currencies are likely to gradually strengthen, the report said.

The won, in particular, is expected to see downward pressure ease as foreign exchange supply and demand conditions improve, supported by South Korea's larger-than-expected current account surplus, the central bank said.

South Korea logged the largest yearly surplus of US$123.05 billion in 2025, surpassing the previous high of $105.1 billion set in 2015.

In January, it recorded its fifth-largest monthly current account surplus, driven by a semiconductor upcycle and strong exports, extending its surplus streak to 33 consecutive months.

"Volatility in the financial and foreign exchange markets, however, has risen significantly since March due to rapidly changing external conditions stemming from the Middle East conflict," Hwang Kul-il, a member of the BOK's monetary policy board, said.

"Uncertainty surrounding the economic outlook has increased sharply. It is necessary to respond proactively through market stabilization measures when needed," he added.

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