The Korean won dropped to below W1,149 against the U.S. dollar on Wednesday for the first time in 47 months. Falling oil prices have pushed up the greenback's value against major currencies, including the British pound and the Australian dollar. Oil is typically traded in the U.S. currency.

The Korean won has become one of this year’s worst performers, already losing 18 percent on the dollar this year. A global binge on the U.S. currency, and rumors of a massive capital pullout by foreign investors in Korea, also dealt a beating to the won.

Korean stocks, however, put the brakes on an 18-month low after investors gobbled up construction and transportation shares, following the government's announcement of property deregulation measures and slipping oil prices.

A study by the Korea Exchange indicates the local stock market is more stable than in other industrialized countries, including China, Japan and Singapore.

The benchmark KOSPI jumped close to 20 points to end the session at over 1,426 points. Tech-heavy secondary Kosdaq gained more than 8 points to hover above 426.

Crude futures prices retreated to below $110 a barrel, which is good news for home consumers. But this did little to offset worries by exporters, who must bear the brunt of a brawnier greenback.

Arirang News