18.08.202502:24:53UTC+00SK Won Gains on Envoy Talks and Power Sector Gains

The South Korean won strengthened to approximately 1,384 per dollar on Monday, recovering previous losses. This shift was bolstered by fresh diplomatic initiatives and an accelerated increase in nuclear energy production. President Lee Jae Myung announced plans to send special envoys to Beijing, aiming for a meeting with Chinese Foreign Minister Wang Yi, during which they are anticipated to deliver a letter inviting President Xi Jinping to the APEC summit in Seoul. Concurrently, data from Korea Electric Power Corp showed that nuclear energy production surged by 8.7% year-on-year in the first half, nearly tripling the official growth target, while coal-fired production decreased by 16%. The enhanced nuclear expansion has reduced reliance on imported fossil fuels and alleviated input cost pressures, thereby contributing to an improved external balance.