[Seoul=Newsis] Reporter Hong Hyo-sik = On the afternoon of the 10th, the KOSPI index, which ended at 3,610.60, up 61.39 points (1.73%) from the previous trading day (3,549.21), is displayed on the electronic board at Hanabank’s dealing room in Jung-gu, Seoul. The KOSDAQ index ended trading at 859.49, up 5.24 points (0.61%) from the previous trading day (854.25). In the Seoul foreign exchange market, the won-dollar exchange rate closed at 1,421.0 won, up 21.0 won from the previous trading day (1,400.0 won). 2025.10.10. yesphoto@newsis.com
Following the Chuseok holiday, the won-dollar exchange rate, which had surpassed the 1,420 won level, climbed back to the 1,430 won range within a day. This was due to heightened trade friction tensions between the US and China, leading to a more pronounced risk-averse tendency, coupled with concerns over the South Korea-US negotiations, applying downward pressure on the value of the won.
According to the Seoul foreign exchange market on the 13th, as of 9:10 am, the won-dollar exchange rate was trading at 1,427.3 won, up 6.3 won from the previous day. The exchange rate opened at 1,430.0 won, up 9.0 won from the previous day. The 1,430 won level was the highest closing rate since April 29, when it recorded 1,437.3 won.
On the previous trading day, the 10th, the exchange rate had increased by 21.0 won to 1,421.0 won due to uncertainties in tariff negotiations with the US and the weakening of the yen and euro.
Risk aversion due to concerns over US-China trade disputes played a significant role in the exchange rate movement. US President Donald Trump, on October 10 (local time), classified China’s rare earth export control efforts as a ‘hostile act’ and announced, “I will impose an additional 100% tariff on China starting from the 1st of next month.”
He also stated, “I was scheduled to meet with Chinese President Xi Jinping at the APEC (Asia-Pacific Economic Cooperation) meeting in Korea in two weeks, but now it doesn’t seem necessary.” As a result, investor sentiment froze, and the three major indexes on the US New York stock market plummeted.
As uncertainty over the APEC summit increased, the value of the won also faced downward pressure. Expectations that there would be progress in the Korea-US negotiations, which have been at a standstill with a $350 billion US investment, during the APEC meeting at the end of this month, have waned.
Foreign capital outflows from the stock market also added to the upward pressure on the exchange rate. As of 9:11 am, the KOSPI is down 1.81% and the KOSDAQ is down 1.55% from the previous day. Foreigners are selling 289.7 billion won in the KOSPI market, but they are buying 34.6 billion won in the KOSDAQ market.
However, during the morning (Korea time), President Trump’s conciliatory remarks toward China served as a factor constraining the upward movement of the exchange rate. President Trump stated via social media, “The US is not trying to harm China, but to help,” adding, “Don’t worry about China. Everything will be fine.”
Lee Min-hyuk, a researcher at KB Bank, said, “The fall in the New York stock market due to Trump’s tariff threats and China’s retaliatory hints will inevitably impact the domestic stock market and result in foreign capital outflows,” but “if the strong dollar pressure eases somewhat due to signs of a prolonged US government shutdown and the US-China risk aversion remains temporary, the upward trend of the exchange rate may also stabilize.”