FX.co ★ Korean Won Retreats After Multi-Month High

The South Korean won slipped to around 1,437 per dollar, giving back recent gains as investors locked in profits after the currency hit multi-month highs. Despite this short-term correction, domestic economic fundamentals remain solid.

In January, tax revenues rose 13.4% year-on-year to 52.9 trillion won, supported by higher value-added tax and income tax receipts. This reflects resilient consumer spending, continued employment growth, and robust real estate market activity.

Externally, market sentiment improved after South Korea deepened its strategic economic partnership with the United Arab Emirates, securing agreements worth more than US$65 billion. These include around US$35 billion in defense cooperation and US$30 billion in investment projects. The partnership covers defense, nuclear energy, and potential joint ventures in third-country markets, creating long-term growth opportunities for Korean companies and underpinning foreign investment inflows.