USD/KRW likely to spike following ongoing political uncertainty, labor strikes

The USD/KRW currency pair is expected to spike in the coming days, following the ongoing political uncertainty amid a host of labor strikes that is trickling down the economy.

The economy remains under pressure, following production cut to its biggest mobile producer Samsung’s flagship product, Galaxy Note 7 and labor strikes at its biggest automobile and unemployment from ongoing restructuring efforts in the shipping sector, Commerzbank reported.

South Korean President Park announced the names of new Prime Minister and two other cabinet ministers to control the fallout of a scandal over the influence of a friend of hers in government affairs. The latest development, commonly referred to as 'Choi-gate', adds to the rising uncertainties surrounding the economy

The President remained under pressure after she apologized in media last week for taking help to prepare her speeches early in her term. South Korean media heavily reported that her friend, Choi Soon-sil, was thought to be involved in the country’s policy-making despite having no recognized official role in the government.

Meanwhile, the South Korean won fell 0.9 percent to 1,149.52 per dollar. The Korea Composite Stock Price Index (KOSPI) ended 1.42 percent lower at 1,978.94 points.