The exchange rate representing the value of Korean won per US dollar. Most directly reflects Korea's external economic health and foreign investor sentiment. • Rising rate = weaker won = higher import prices, better export earnings • Falling rate = stronger won = lower import prices, lower export earnings • Below 1,200: Strong won territory • 1,200–1,350: Normal range • Above 1,350: Weak won alert, potential Bank of Korea verbal intervention During US rate hike cycles, the dollar strengthens and won weakens. In global crises, safe-haven demand pushes the dollar higher. About 70% of Korean exports are settled in USD, directly impacting corporate earnings.