Korean Won Hits 17-Year Low; Authorities Order Banks to Curb Speculation

South Korea's financial regulators—the Bank of Korea and Financial Services Commission—directed banks on 8 June 2026 to tighten controls on speculative trading after the won reached its weakest level against the dollar since 2009. The currency shed over 8% in the second half of 2025. For Korea's export-reliant economy, a weak won raises import costs and complicates monetary policy. Bank guidance in Korea carries implicit force; compliance will likely involve stricter position limits and enhanced scrutiny of non-resident flows.