The South Korean currency fell against the US dollar in the Asian session following rather pessimistic economic data for the month of December.  Currently trading at 1,147.70, the South Korean won is now down by 0.01% against the greenback – falling from as high as 1,146.38 at the beginning of the session.

According to the Bank of Korea, consumer confidence in the Asian economy declined to the lowest leve since September.  Index readings of over 2,000 households dipped to a reading of 99 – down from a rosier 103 in the month of November.  The decline below the benchmark 100 level shows a significant shift in sentiment, as more households are seemingly pessimistic now as opposed to just a month ago.

Behind the change in optimism has been the ongoing crisis in Europe, along with the recent passing of North Korea’s leader – Kim Jong Il.  Although Kim’s passing doesn’t place the Northern economy in turmoil – his son is expected to take the reins of the country – there is some speculation that a show of strength by the young leader may involve violence on the embroiled peninsula in the near future.

The uncertainty from both events is compounding fears of an economic recession in the Asian country – even as policymakers pledge to ensure the stability of the markets.