The South Korean won weakened to below the 14-hundred mark against the greenback on Thursday for the first time in more than 13 years during intraday trading.
As of 10:31 AM, it was trading at 1,407.8-5 won against the dollar.
The won slumped below the 1,400 mark for the first time since March 31, 2009, when the local currency hit 1,422 won for one U.S. dollar.
The sharp depreciation follows the Federal Reserve's latest rate hike.
South Korean Finance Minister Choo Kyung-ho said the government is closely monitoring financial markets and is ready with a set of comprehensive and systematic measures based on past experience.