Forex Update: US Dollar/Korean Won
The forex market for the US Dollar/Korean Won (USD/KRW) has been influenced by recent developments in both the financial and political landscapes. As of May 29, 2025, the close price for USD/KRW was 1370.41, with a 52-week high of 1487.04 on December 26, 2024, and a 52-week low of 1302.8 on September 29, 2024. The primary exchange for this currency pair is IDEAL PRO.
Cryptocurrency and Regulatory Developments
Recent news highlights the potential impact of South Korea’s presidential election on the cryptocurrency sector. According to a report by Bloomberg, regardless of the election outcome, the cryptocurrency industry is expected to benefit. Both leading candidates, Lee Jae-myung and Yoon Suk-yeol, have pledged to ease regulations and expand access to digital assets. Lee Jae-myung has proposed legalizing spot cryptocurrency ETFs and allowing South Korea’s substantial pension funds, valued at approximately $88.4 billion, to invest in cryptocurrencies. He also advocates for the issuance of a stablecoin pegged to the South Korean won as part of a strategy to modernize the financial system and curb capital outflows.
South Korea is one of the world’s most active cryptocurrency markets, with over a third of its population, approximately 18 million people, participating in digital asset trading. On some days, the trading volume on South Korean cryptocurrency platforms surpasses that of the stock market. As of the end of last year, South Koreans held approximately $74.5 billion in cryptocurrencies, according to data from the Bank of Korea.
Central Bank’s Cautious Stance on Stablecoins
In contrast, the Governor of the Bank of Korea, Lee Ju-yeol, has expressed a more cautious approach towards the introduction of won-backed stablecoins within the domestic economy. Concerns have been raised about the potential for stablecoins to circumvent capital control measures.
Support for Non-Profit Organizations in Crypto Sales
In a move to foster a culture of virtual asset donations, Upbit, a major cryptocurrency exchange, has begun supporting non-profit organizations in selling virtual assets. Starting June 1, 2025, non-profits can sell virtual assets, with Upbit facilitating the sale of 0.55 Ethereum (ETH) by the international NGO World Vision, valued at approximately 1.98 million KRW. This initiative follows the Financial Services Commission’s roadmap for corporate participation in the virtual asset market.
Impact of US Trade Policies on Asian Markets
Asian markets have experienced fluctuations due to developments in US trade policies. A US federal appeals court has temporarily reinstated extensive tariffs imposed by former President Donald Trump, leading to a dampening of investor enthusiasm in East Asian markets. The court’s decision to review the case further has caused uncertainty, prompting a sell-off in stocks. The Trump administration’s success in appealing the initial ruling has allowed the tariffs to remain in effect temporarily, while the administration considers alternative strategies.
These developments in both the cryptocurrency sector and international trade policies are likely to influence the USD/KRW exchange rate, reflecting broader economic and regulatory trends.