Business · Markets · 1 day ago
Strong chip exports support the won as analysts see room for gains
The South Korean won has strengthened to around 1,330 per US dollar after falling to about 1,555 in early July.
It has closed in the 1,300 range since first returning to that level in mid-August.
Strong semiconductor exports are bringing more dollars into South Korea, and exporters selling those dollars add support for the won.
The currency has held up even as the dollar strengthened against other major currencies.
Analysts also point to South Korea’s current account surplus and stronger public finances as factors supporting the currency.
One analyst expects the won to trade between 1,280 and 1,420 in the fourth quarter, while another forecasts an average of 1,280 next year.
These are forecasts, and the won’s future value will depend on economic and currency-market conditions.
The won has strengthened to around 1,330 per US dollar as strong semiconductor exports improve dollar supply.
The currency has held closing levels in the 1,300s for nearly two months despite pressure from a stronger dollar.
Analysts say exporters’ dollar sales and South Korea’s current-account surplus support further won gains.
One analyst expects the won to enter the 1,200s next year.
- Who
- South Korean exporters and currency-market analysts.
- What
- The won has strengthened, supported by strong semiconductor exports and improved dollar supply.
- When
- The article was published on October 11, 2026; the won had remained in the 1,300s for nearly two months.
- Where
- The Seoul foreign-exchange market.
- Why
- Strong semiconductor exports have brought in dollars, while exporters’ dollar sales and a current-account surplus support the won.
This story does not have two clearly opposing sides.
The won has diverged from other major currencies amid dollar strength, and expectations have grown that favorable supply and demand conditions, including exporters’ dollar sales, will continue.
While fiscal instability has emerged in major developed countries such as the United States, Japan and France, South Korea is currently in the most favorable fiscal position among currencies, as the semiconductor boom has allowed it to set aside fiscal resources for the future.
Compared with the time when the won was in the 1,330s in the past, there are now more factors pushing the won higher.
The won, which remains undervalued on a real effective exchange rate basis, will continue to appreciate further on the back of South Korea’s current-account surplus.
The won fell to around 1,555 per dollar, its weakest level since the global financial crisis.
The won entered the 1,300s for the first time that year.
The won was still closing in the 1,300s, trading around 1,330 per dollar.
Park Sang-hyun forecast that the won could trade in a range of 1,200 to 1,450 per dollar, averaging 1,280.
- Recent won level
- Around 1,330 per US dollar
- Early July low
- Around 1,555 per US dollar
- 4th-quarter forecast
- 1,280–1,420 per dollar, from Moon Da-woon
- Next-year forecast
- 1,200–1,450 per dollar, averaging 1,280, from Park Sang-hyun
Sources
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