Amid worsening economic conditions both at home and abroad, South Korea is seeing the value of its currency slip at the fastest pace among key emerging economies. 

According to Bloomberg on Sunday, the Korean won fell three-point-72 percent against the greenback between early April and last Friday. This is the second sharpest drop after Turkey, which is struggling from political unrest and depleting foreign exchange reserves.  

The drop in the won is sharper than the decline of the currency in Argentina, which is rumored to be on the brink of a major financial crisis, and has slipped by more than double compared to the Chinese yuan. 

When the U.S. raised its tariffs on Chinese goods worth more than 200-billion dollars from ten to 25 percent last Friday, the won-dollar exchange rate jumped to more than one-thousand-180 won at one point in trading, marking the highest level witnessed since January 2017. 

The U.S.-China trade war is believed to have led to the sharp rise in the exchange rate. However, market observers say the rate jumped after the market reflected structural problems in South Korea’s economy, including a drop in economic growth potential.

Concerns over South Korea’s real economy are growing. The country posted minus growth in the first quarter and its exports have been on a decline for five consecutive months, raising fears the economy will come to see a current account deficit. In addition, geopolitical woes have emerged due to North Korea’s missile provocations, further increasing uncertainties.