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- The won has gained 10.8% since early July, strengthening beyond the 1,400-per-dollar level.
- Semiconductor exports jumped 179% to $41 billion, driving major dollar inflows into South Korea.
- Chip stocks are moving in the opposite direction, with Samsung and SK Hynix suffering sharp losses amid global tech selling.
South Korea’s won has climbed to its strongest level against the US dollar in more than 10 months, breaking through the 1,400 mark as a surge in semiconductor exports sends more foreign currency into the domestic market. The move comes against a sharply different backdrop for South Korean stocks, where chipmakers are facing intense selling pressure.
The won traded at 1,396.6 per dollar at press time on Wednesday, marking a 10.8% gain from its July low of 1,557.9. The currency was last at similar levels in late September 2025.
Semiconductor Exports Fuel Won Recovery
A powerful increase in South Korea’s export earnings is helping explain the won’s recent strength. The country shipped $98.89 billion worth of goods in July, representing a 63% increase from the same month a year earlier.
Semiconductors were at the center of that performance. Chip exports surged 179% to $41 billion, creating a substantial flow of US dollars into the South Korean economy.
Those export dollars can support the won when converted into local currency, increasing demand for the Korean currency. Additional foreign-currency inflows have come from SK Hynix, which raised $26.5 billion through a US depositary receipt listing and said the proceeds would support projects in South Korea.
Chip Stocks Face Heavy Selling
The currency rally stands in stark contrast to the performance of South Korean equities. The KOSPI fell 5.52% to 6,490.63 on Wednesday, following a 22% decline in July that marked its steepest monthly drop since the global financial crisis.
The Korea Exchange activated a sell-side trading curb as losses accelerated. Semiconductor companies were among the biggest casualties.
Samsung Electronics dropped 7.64% to 248,000 won, while SK Hynix fell 9.09% to 1.511 million won. Together, the companies represent roughly half of the KOSPI’s weighting, making their performance particularly important for the broader index.
Global Chip Weakness Adds Pressure
The latest selling followed a steep overnight decline in US semiconductor stocks. SK Hynix’s depositary receipts dropped 9.2% in New York, while Micron Technology lost 7.02%.
The divergence underscores an unusual feature of South Korea’s market. Strong semiconductor exports are helping the South Korean won through larger dollar inflows, while concerns about global technology valuations and chip demand are hurting semiconductor shares.
Also Read: South Korea Blocks Polymarket: 5 Key Reasons the Prediction Market Is Under Fire
For now, South Korea’s semiconductor industry is sending mixed signals. Its export strength is providing meaningful support for the won, even as global chip-stock weakness weighs on equities. The split between currency and stock-market performance shows how different parts of the economy can respond very differently to the same technology boom.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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