BOK’s Rhee Delays Trip to Warn on Won as Middle East Fears Weigh

Bank of Korea Governor Rhee Chang Yong issued an urgent warning about volatile currency movements after the won hit its lowest level since the 2008 financial crisis overnight. The sharp decline was driven by escalating Middle East tensions, which triggered broader financial-market instability and investor flight to safer assets. Rhee delayed an overseas trip to address the crisis directly, signaling the central bank’s heightened concern over potential economic fallout from the currency’s rapid depreciation. The warning underscores growing risks to South Korea’s export-dependent economy, as a weaker won could inflate import costs and fuel inflationary pressures. Analysts interpret the move as a potential prelude to intervention or policy adjustments if market turbulence persists, though no immediate measures were announced.