The won fell 13.6 against the dollar in one day following the Federal Reserve's rate announcement, and government bond yields rose the same day.

The path is straightforward. Higher U.S. rates raise the expected return on dollar assets, money moves toward the dollar, and the won weakens.

Government bond yields reflect how the market reads future policy rates. As expectations spread that the Bank of Korea could raise again in November, short- and long-term yields moved together.

For companies, the cost of issuing corporate bonds rises. Lower-rated issuers face larger spreads, widening the gap in funding conditions.

For households, floating-rate mortgages respond first. When the benchmark behind loan rates rises, monthly payments increase after a lag of several months.

Import prices move as well. Because crude oil, grain and raw materials are bought in dollars, a weaker won pushes domestic prices up.

For Chinese families in Korea, remittances and tuition are the direct items. The direction of the burden differs between converting a remittance home and paying tuition in dollars.

Authorities say they are watching the market and have kept to their standing line that stabilizing steps are possible if moves become sharply one-sided.