The Korean won's real effective exchange rate (REER) fell to its lowest level in more than 17 years in June, marking a significant deterioration in the currency's international purchasing power.
Data released Sunday showed the index sliding as the U.S. dollar maintained broad strength across global markets.
The move underscores the persistent pressure on the currency, which has depreciated nearly 6% against the greenback year-to-date.
The decline in the REER reflects not just nominal depreciation against the dollar, but also inflation differentials that have reduced the won's competitiveness.
The move underscores the persistent pressure on the currency, which has depreciated nearly 6% against the greenback year-to-date.
This broader erosion in value signals that the won is losing ground even when adjusted for price level changes, a key metric for trade competitiveness.
The weakness comes amid a sustained exodus of foreign capital from South Korean financial markets.