Korean won rallies while Kospi slides amid record chip export inflows
The Korean won has surged to a two-year high even as the Kospi index fell sharply, driven by massive semiconductor export earnings.
During the past four months the Korean won moved from a low of 1,549.4 per dollar to a high of 1,324.2, its strongest level in two years, while the Kospi index dropped from 8,476.48 to 5,533.77, a decline of 34.5 percent. Offshore investors sold a net 62.84 trillion won of shares, contributing to the equity market slump. Meanwhile, record semiconductor shipments pushed September export values above $121.1 billion, bringing the year-to-date total to $814.7 billion.
An economist at Woori Bank said exporters’ dollar-selling flows will dominate the forex market, and the increased dollar supply may encourage short-selling. Analysts note that the won’s rapid appreciation and heightened volatility are prompting foreign investors to sell Korean equities, reversing the usual pattern where a weaker won supports stock buying.
Why it matters
The split between the won and the stock market shows how export-driven dollar inflows can reshape Korea’s currency and equity dynamics.
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