The South Korean won has fallen for ten consecutive days, nearing the edge of a financial crisis. The pressure on South Korea's exchange rate "defense war" has increased dramatically.

Due to the accelerated capital outflow caused by local investors, the Korean won exchange rate continues to probe lower, with the lowest level since the global financial crisis just a step away. The pressure on the Korean authorities' exchange rate defense has sharply increased. On Wednesday, the Korean won against the US dollar fell by 0.25% at one point, reaching 1479.3 won per US dollar, not only weakening for ten consecutive trading days, but also approaching the lowest level since March 2009. The current strong demand for the US dollar in the Korean market is due to local investors heavily buying US stocks on one hand, and importers concentrating on buying foreign currency to make external payments on the other hand. Data from Korean securities depository institutions show that as of January 13, Korean retail investors had cumulatively bought about $2.2 billion worth of US stocks. At the same time, foreign investors are accelerating the pace of selling Korean stocks, further exacerbating the depreciation pressure on the Korean won. Although the Korean authorities introduced a series of measures to stabilize the won at the end of last year, multiple external factors continue to exert sustained pressure on the exchange rate. Strong US economic data has boosted the US dollar index, news related to the Japanese election has weighed down the yen exchange rate, and concerns about rising oil prices due to tensions in the Middle East have added another layer of pressure on the Korean won. In recent weeks, the Korean authorities have increased efforts to support the won through verbal intervention and measures such as exempting banks from foreign exchange stabilisation taxes, but these measures have not been able to effectively curb the depreciation of the Korean won. The market is now focused on the next steps of policy actions at the policy level - the continuing depreciation of the Korean won may exacerbate imported inflationary pressures and suppress domestic consumer demand, and policymakers urgently need to come up with stronger response measures. Since the beginning of this year, the Korean won against the US dollar has fallen by more than 2.6%, making it the worst performing currency in Asia, and also placing it among the ranks of globally weak currencies.