Trump-Induced Market Anxiety: Won Plummets Below 1500, Facing Currency Crisis

The won-dollar exchange rate has breached 1500, signaling a severe crisis. This reflects market anxiety stemming from the unpredictable policy shifts and erratic behavior of former US President Donald Trump. A rapid deterioration in investor sentiment is driving the won's continuous decline, raising concerns about the broader Korean economy.

The Backdrop of the Won's Sharp Decline

According to Maekyung, as of March 27, 2026, the won-dollar exchange rate has surpassed 1500. This is a direct result of market anxiety stemming from the unpredictable policy shifts and erratic behavior of former US President Donald Trump. Trump previously significantly impacted currency markets by emphasizing protectionist trade policies, and a similar pattern is now unfolding.

Specifics of Trump Risk

• Trade Policy Uncertainty: Former President Trump is raising the possibility of trade wars by pointing out trade imbalances with specific countries and hinting at tariff impositions.


• Strong Dollar Policy: Former President Trump is likely to pursue a strong dollar policy, which could lead to a weakening of emerging market currencies.


• Unpredictable Behavior: Former President Trump's sudden statements and policy changes reduce market predictability and dampen investor sentiment.

Impact on the Korean Economy

The decline in the won's value can have various negative impacts on the Korean economy, including weakened export competitiveness, rising import prices, and a decrease in foreign exchange reserves. South Korea, with its highly externally dependent economic structure, is particularly sensitive to exchange rate fluctuations.

Future Outlook and Investment Strategy

In the short term, the won's value is expected to experience increased volatility depending on former President Trump's policy direction and market sentiment. Investors should adopt a cautious approach, reduce their exposure to risk assets, and consider restructuring their portfolios towards safer assets. Utilizing hedging strategies to manage risk against exchange rate fluctuations is also crucial.

The Government's Role

The government should actively intervene in the foreign exchange market to stabilize the exchange rate and make efforts to calm market sentiment. Furthermore, strengthening export competitiveness and improving the economic structure are essential to enhance the ability to respond to external shocks.