In the last few weeks, the Ministry of Economy and Finance (MOEF) and the financial community have been consumed by a paradoxical crisis: the South Korean won has crashed to levels not seen since the 1997 Asian Financial Crisis, trading between 1,465 and 1,475 against the dollar in November and early December.

This depreciation is occurring despite the Korea Composite Stock Price Index (KOSPI) surging past the 4,000 mark — a 61% growth rate since February — under the government’s Corporate Value-Up initiative.

Under normal market conditions, a booming equity market should strengthen the domestic currency as foreign capital