South Korea Is Right to Worry About a Weakening Won

The dollar may be languishing, but not everyone gets a free ride. South Korea is on edge about the slide in its currency, which is approaching levels unseen outside of the Global Financial Crisis of 2007-2009 or the Asian collapse a decade earlier.

The latter episode, which culminated in a rescue for the country from the International Monetary Fund, left deep scars. A generation of policymakers who began their careers in the late 1990s remain wary of abrupt shifts in capital flows. That makes what happens next crucial.