South Korean won to U.S. dollar exchange rate approaches 1,440 won per dollar

[Anchor]

Concerns are rising that the uncertainty stemming from the impeachment situation may persist for a long time, causing turmoil in the financial markets.

Individuals are selling off stocks, leading both the KOSPI and KOSDAQ to record their lowest levels of the year, while the won-dollar exchange rate surged to threaten the 1,440 won mark.

This is a report by Son Seo-young.

[Report]

The first stock market opened after the impeachment vote failed.

Individual selling exceeded 1 trillion won, causing both the KOSPI and KOSDAQ to hit their lowest levels of the year.

The KOSDAQ index fell more than 5% before the market closed, breaking below the 630 mark for the first time in 4 years and 8 months.

Since the declaration of emergency martial law on the 4th, 144 trillion won has evaporated from our stock market.

[Hwang Se-woon/Senior Researcher, Korea Capital Market Institute: "If political uncertainty continues for a long time, it could ultimately have a negative impact on next year's economic growth rate and various corporate performances. It seems that these concerns are being rapidly reflected in stock prices."]

Tension lingered in the foreign exchange dealing room all day.

The won-dollar exchange rate recorded 1,437 won, an increase of nearly 18 won compared to the previous trading day, based on weekly closing prices.

Although authorities are intervening to curb the pace of the rise, it is insufficient to stop the trend.

[Park Hyung-jung/Economist, Woori Bank: "If the current situation continues until January next year, I think we should prepare for the won-dollar exchange rate to exceed 1,500 won or even higher."]

Securing foreign currency liquidity has become urgent.

In particular, the burden of exchange rates on small and medium-sized enterprises is rapidly increasing, raising concerns that it could lead to liquidity issues for financial institutions.

Financial authorities plan to purchase foreign currency repurchase agreements if necessary to supply liquidity and will soon announce measures to improve structural foreign currency supply and demand.

Global credit rating agencies have begun to warn about the burdens our economy will bear.

Goldman Sachs pointed out that, unlike past impeachment situations, external conditions are also unfavorable, while Moody's forecasted that it could reduce the preference for Korean assets.

This is KBS News, Son Seo-young.