The Korean won and stock market wobbled briefly during trading on Monday after North Korea's latest threats but stabilized in the afternoon.
The won closed down W4.5 against the U.S. dollar at W1,094.8. It began trading at W1,095.5, weakened to W1,102.8 but soon recovered.
It was the first time since Oct. 25 last year that the won fell past the W1,100 level. Selling by exporters in afternoon trading cushioned the fall.
The Korea Composite Stock Price Index fell more than 20 points led by foreign selling to 1,982.38 at one point, but investor sentiment rallied when there were no signs of a North Korean provocation, and the exchange closed up 0.13 percent from the previous session at 2,003.35 points.