Why Is South Korea’s Won Rising While Its Chip Stocks Collapse?
South Korea's won hit its strongest level against the dollar in more than 10 months on Wednesday. The currency strengthened past the 1,400 mark, a level last seen in late September 2025.
A booming semiconductor industry is helping drive the currency's recovery, even as the same sector comes under heavy selling pressure in South Korean equities.
Chip Dollars Reach the Currency Market
The won has gained 10.8% since early July. The currency traded as weak as 1,557.9 per dollar on July 2 before strengthening to 1,396.6 at press time.
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Export earnings explain the move. Korea shipped $98.89 billion of goods in July, up 63% from a year earlier. Semiconductor exports rose 179% to $41 billion.
Those dollars are now reaching the domestic market. SK Hynix raised $26.5 billion through a US depositary receipt listing. The firm said that it will use the funds from the listing to fund projects in the country.
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