The Korean Won has mostly followed DXY since 2015 as its GDP growth along with other auxiliary metrics have mostly aligned with other major ex-USD currencies.
However, ever since the DXY and USDKRW charts converged at the end of the 2022 rate-hike cycle, a 20% gap has emerged.
Noticeably, since DXY hit a local top at its strongest point in early 2025, it has dropped 10% while the Korean won has only gained 4% to the US dollar.
Demographics may be the long-term reason for KRW weakness, but more direct causes would include political instability along with anti-capitalist policies.
As South Korea’s Foreign Exchange Transactions Act limits price discovery, the USDC/KRW rate from Upbit can be used as the de facto “street” exchange rate.
There was a recent agreement between the US Department of the Treasury and the Ministry of Economy and Finance of the Republic of Korea that aims to curb currency manipulation, but it remains to be seen if that would provide enough transparency and eventual free flow of capital in and out of South Korea
[https://home.treasury.gov/news/press-releases/sb0269]
Due to both macro effects and policies set forth by the incumbent leadership, further weakness is likely to ensue for the KRW.