On June 7, the South Korean won experienced a significant decline against the U.S. dollar, nearing levels reminiscent of the global financial crisis. The exchange rate peaked at 1,561.5 won per dollar, the highest intraday level in over 17 years. This depreciation has been fueled by persistent foreign selling of Korean stocks, with total sales approaching 120 trillion won (approximately $77 billion) over the past 20 trading days. Analysts attribute the won's weakness to increased demand for dollars, driven by a robust U.S. labor market and geopolitical tensions in the Middle East, which have heightened the appeal of safe-haven assets. Additionally, South Korea's inflation reached 3.1% in May, the highest in more than two years, largely due to rising oil prices linked to the Middle East conflict. The Bank of Korea is contemplating an interest rate increase to address these economic pressures. Deputy Prime Minister Koo Yun-cheol has indicated that the government is closely monitoring the situation and is prepared to implement measures to stabilize the market.