The escalating war in the Middle East is fueling concerns across the retail industry in Korea that rising oil prices and currency volatility could dampen consumer sentiment and weigh on spending. Although the threats have yet to deliver a visible blow to the consumer sector, industry officials are taking a gloomy view, citing past global crises that triggered public anxiety and hurt sales. The most vulnerable sector is duty-free retail. As duty-free product prices are often set in U.S. dollars, a weaker Korean won directly increases the price burden on consumers. The exchange rate has fluctuated over the past week, with the local currency weakening overall. According to the Bank of Korea, the average daily fluctuation in the won-dollar exchange rate reached 13.2 won as of March 6, the highest level since March 2020, when volatility averaged 13.8 won amid heightened fears over COVID-19. Over the past week, the won was generally traded between 1,460 won and 1,480 won per dollar, but in several overnight trading sessions it was traded near the 1,500-won level. “A drop in the Korean won’s