South Korean Won Weakens on Foreign Outflows
The South Korean won weakened to around 1,342 per dollar, reversing recent gains as heavy foreign selling of domestic equities, particularly semiconductor stocks, increased demand for the US dollar. Foreign investors sold a net KRW 1.26 trillion worth of South Korean shares, while the KOSPI plunged nearly 4% amid concerns that a Democrat-led US Congress could introduce tighter regulations on AI and data centers. The sharp selloff prompted the Korea Exchange to activate a sell-side sidecar, suspending program trading in KOSPI-listed shares for five minutes. Meanwhile, the won's depreciation came despite broader dollar weakness and a record current account surplus of $61.46 billion in September, supported by robust semiconductor exports. Year to date, the won has depreciated by 6.95% against the US dollar.
The South Korean won weakened to around 1,342 per dollar, reversing recent gains as heavy foreign selling of domestic equities, particularly semiconductor stocks, increased demand for the US dollar. Foreign investors sold a net KRW 1.26 trillion worth of South Korean shares, while the KOSPI plunged nearly 4% amid concerns that a Democrat-led US Congress could introduce tighter regulations on AI and data centers. The sharp selloff prompted the Korea Exchange to activate a sell-side sidecar, suspending program trading in KOSPI-listed shares for five minutes.
Meanwhile, the won's depreciation came despite broader dollar weakness and a record current account surplus of $61.46 billion in September, supported by robust semiconductor exports. Year to date, the won has depreciated by 6.95% against the US dollar.