The won, which gained nearly two percent this month to a nine-year high against the dollar, appeared to be unstoppable on its upward swing until financial authorities intervened on a massive scale Friday.

Following the intervention, the won dropped 0.7 percent against the greenback to close at 920.30 won per dollar Friday, up 6.50 won from the previous day.

"Thanks to the massive intervention, the market stabilized considerably. The government must have shelled out some 1.5 billion dollars on Friday," a dealer with Kookmin Bank said.

It was the largest sum of intervention this year but its impact was dulled considerably as exporting companies and banks seized on the chance and sold their backed-up dollars en masse.

The won's rise was also dampened by news reports that top officials of the central Bank of Korea and the finance ministry met on Friday to discuss ways to curb the won's appreciation.

The Bank of Korea and the government also attempted to talk down the won's strength.

Governor of the central bank Lee Seong-Tae said last week that the bank's policy makers "considered and discussed" the foreign exchange rate.

Finance and Economy Minister Kwon O-Kyu went a step further, saying the government would conduct "smoothing operations" to check the won's advance if necessary.

Kwon conceded that the country's exports-driven economy is under pressure from the won's rise. His bank last week cut its economic growth target for next year from 5.0 to 4.4 percent amid sluggish private consumption and investment.