Anchor: The South Korean won has continued to appreciate in recent weeks, as the local economy is faring better-than-expected and external risks have somewhat subsided.
Oh Soo-young reports.
 
Report: The South Korean won closed at one-thousand-97-point-five on Friday, gaining three-point-nine won against the greenback from the previous trading session.

This marks the first time in nearly 14 months that the won-dollar exchange rate has fallen below the eleven-hundred mark, extending the gains made the day before after South Korea clinched a bilateral currency swap deal with Canada on Wednesday.

Seoul also extended its 56-billion-dollar swap deal with China last month, safeguarding both economies against financial volatilities. 
 
Other external risks have also been reduced in recent months, rendering the South Korean currency a safer asset for foreign investors. High tension with North Korea appears to have somewhat subsided since September. Also, Seoul and Beijing's recent agreement to put a diplomatic rift behind them is expected to normalize economic relations.
 
Moreover, the South Korean economy has fared stronger than expected, hitting quarter-on-quarter growth of one-point-four percent in the July-to-September period-- a level not seen in seven years.
 
Robust exports of key IT products have also boosted corporate performance. The 525 companies listed on the benchmark KOSPI index saw their quarterly profits grow by nearly 30-percent on year in the third quarter, reaching 120 trillion won
 
Analysts believe the local currency is likely to continue on the up for the time being, with financial authorities unlikely to actively intervene in the market.
 
However, a stronger won means higher costs for export companies. According to a state-run economic think-tank, a gain of one-percent for the local currency results in a drop of zero-point-05 percentage points in operating profit.
 
Regarding the rapid appreciation seen in recent weeks, a foreign exchange official told Yonhap News Friday that authorities are closely monitoring the market for a possible trend of short-term hoarding.
Oh Soo-young, KBS World Radio News.