SEOUL: In response to mounting worries about global monetary tightening and an economic crisis, the South Korean currency WON on Thursday dropped below the 1,300-won mark versus the US dollar for the first time in nearly 13 years.

According to media reports, Finance Minister Choo Kyung-ho intervened verbally to prevent further decrease, stating that the foreign exchange authorities will act to stabilise the currency market if necessary in order to lessen market fears brought on by the won's weakening.

At a meeting with ministers in charge of economic matters, he declared, "The administration would also make policy steps to ease demand-supply imbalances in the market."

In relation to the dollar, the local currency decreased 4.50 WON to settle at 1,301.80 WON. The WON finished at 1,315 per dollar on July 13, 2009, which was the lowest closing since then. The currency dropped as low as 1,302.80 at one point during the session's turbulent trading of the Korean currency.

The WON pared its earlier weakness after Choo's verbal admonition and briefly surpassed the 1,300 level. When foreign investors pushed sales of Seoul equities in the afternoon, it was unable to maintain the level, according to dealers.

On Thursday, Seoul's stocks fell for the second straight day, reaching a yearlong low. To settle at 2,314.32, the benchmark KOSPI dropped 28.49 points, or 1.22 percent. Foreigners sold local stocks worth a net 296.3 billion WON (USD227).

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