Interest Rates: Higher South Korean interest rates can attract foreign investment, increasing demand for KRW and strengthening its value.

Economic Growth: Strong South Korean economic growth typically leads to a stronger KRW as it suggests higher returns on investments.

Inflation: Relatively lower inflation in South Korea compared to other countries tends to support a stronger KRW.

Trade Balance: A positive trade balance (exports exceeding imports) generally strengthens the KRW due to increased demand for the currency.

Geopolitical Risks: Heightened geopolitical tensions involving North Korea or other regional concerns can weaken the KRW as investors seek safer havens.

Global Economic Conditions: Global economic downturns can negatively impact the KRW as investors may reduce exposure to emerging markets like South Korea.

Foreign Investment Flows: Increased foreign direct investment or portfolio investment into South Korea strengthens the KRW due to increased demand.