South Korean Won Retreats on Trade Policy Jitters

The South Korean won softened to around 1,392 per dollar on Thursday, pulling back from recent gains as trade uncertainty dampened sentiment. The weakness followed recent claims from US President Donald Trump indicating that trade agreements with South Korea, Japan, and the European Union could be ‘unwound’ if the Supreme Court upholds a ruling against his tariff policies. Although the case is confined to Section 301 tariffs—deployed during the US–China trade conflict—the remarks broadened investor concerns about the durability of existing trade arrangements. This policy overhang outweighed supportive balance-of-payments data, as the Bank of Korea reported a $10.78 billion current account surplus in July, the largest ever for that month and the 27th consecutive surplus, underpinned by solid exports and higher overseas equity income.