(2nd LD) Korean won hits 17-yr low as Iran crisis escalates

▲ The dealing room at Hana Bank in central Seoul on March 23, 2026 (Yonhap)

(2nd LD) Korean currency-volatility

(2nd LD) Korean won hits 17-yr low as Iran crisis escalates

(ATTN: RECASTS headline, lead; UPDATES with additional information in paras 2-3, 7-9; CHANGES photo)

SEOUL, March 23 (Yonhap) -- The South Korean currency hit a fresh 17-year low against the U.S. dollar on Monday, as geopolitical tensions stemming from the Iran crisis continued to weigh on investor sentiment and drive demand for hard currency.

The won was quoted at 1,517.30 per dollar as of 3:30 p.m., down 16.7 won from the previous session, after opening at 1,504.9.

On Thursday, the currency closed at 1,501 won per dollar, the lowest since March 9, 2009, when it hit 1,549 during the global financial crisis.

The won slightly rebound to 1,500.6 won per dollar on Friday, but it marked the first time since 2009 that the won has remained below the 1,500-won level for two consecutive sessions.

On Sunday, Iran ratcheted up its threats saying it would strike the energy and water facilities of its neighbors in the Gulf if the United States hit Iran's electricity grid.

There have been hopes for easing tensions in the Middle East, after U.S. President Donald Trump said he would not deploy troops for the war, and Israeli Prime Minister Benjamin Netanyahu also said Israel would refrain from further attacks on Iranian energy facilities.

Foreigners' net selling of local stocks also contributed to the currency's weakness. On the main bourse, offshore investors sold a net 3.67 trillion won (US$2.43 billion) worth of shares.

The benchmark Korea Composite Stock Price Index (KOSPI) plunged 375.45 points, or 6.49 percent, to close at 5,405.75.

South Korea's foreign exchange and stock markets have shown heightened volatility since the beginning of the conflict earlier this month, as the country remains heavily dependent on energy imports.

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