South Korean Won: Strength backed by tech flows against US Dollar – Societe Generale
Societe Generale analysts highlight that the Korean Won (KRW) has gained 12% versus the Dollar year-to-date, with USD/KRW falling from around 1560 in June to below 1380.
Societe Generale analysts have noted the South Korean Won (KRW) has strengthened by 12% against the US Dollar this year, with the USD/KRW exchange rate falling from approximately 1560 in June to under 1380. This rise is attributed to optimism surrounding AI and semiconductors, large buyback-related Dollar selling, and expected month-end exporter flows keeping the USD/KRW a tactical sell on rallies.
The KRW was one of Asia's top performers in response to the USD sell-off post-Liberation Day tariffs in Q2 2025, with the currency climbing 12% against the USD on a spot basis year-to-date. The recent rally in USD/KRW, from around 1560 in early June to below 1380, appears overextended, but highlights enthusiasm in the AI and semiconductor sectors.
Recent support has emerged from sizeable buyback announcements by Samsung ($80bn) and SK Hynix ($28bn), potentially generating additional dollar selling through won conversion flows. Analysts view USD/KRW as a tactical sell on rallies, bolstered by anticipated month-end exporter dollar sales.
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