In the wake of President Donald Trump's ultimatum regarding the Hormuz Strait, concerns regarding an escalation of conflicts in the Middle East have driven the South Korean won below 1517.3 per US dollar, which is the highest rate seen in 17 years, during what has been dubbed 'Black Monday' in financial markets. The KOSPI index dropped sharply by 6.4%, reflecting widespread panic across Asian markets, including significant declines in Tokyo, Taiwan, and Shanghai, each falling by 3-4%. This severe drop is indicative of investors' fears of geopolitical instability affecting economic projections.

On the foreign exchange market in Seoul, the exchange rate reached 1517.3 won per dollar, climbing by 16.7 won from the previous trading day, marking the highest closing rate since March 10, 2009, during the global financial crisis. Analysts noted that the won has significantly weakened against major currencies, contributing to rising inflationary pressures in South Korea, as the dollar index showed an uptick amid declining values of the yen, yuan, euro, and pound, showing that the won was uniquely affected by geopolitical fears compared to its global counterparts.

The continued rise in the exchange rate suggests a possibility of the 1500 won level becoming a new standard, with projections that it may continue to rise further. Experts suggest that this trend could be fueled by prolonged high oil prices, with forecasts indicating volatility around this rate could persist between 1480 to 1530 won in the short term. Additionally, there has been a significant outflow of foreign capital from domestic markets, as foreign investors sold approximately 3.675 trillion won on the KOSPI alone, compounding the pressures on the won's value amidst a general decline in investor confidence in South Korean equities.