If you invest in Korean stocks, watching the KOSPI is not enough.

You also need to watch:

USD/KRW

because a Korean stock can rise in won terms while delivering a very different return to an investor whose base currency is the U.S. dollar.

The exchange rate also affects:

foreign investor flows
exporters
import costs
inflation
Bank of Korea policy
Korean corporate earnings
market sentiment

But USD/KRW is frequently misunderstood.

A rising USD/KRW does not mean the Korean won is strengthening.

It means the opposite.

That distinction is the starting point.

30-Second Answer

USD/KRW tells you how many Korean won are needed to buy one U.S. dollar.

For example:

USD/KRW = 1,400

means:

USD 1 = KRW 1,400

Therefore:

USD/KRW rises

1,400 → 1,450

means:

KRW weakens

USD/KRW falls

1,400 → 1,350

means:

KRW strengthens

For global investors, the won matters because:

Korean Stock Return + Currency Effect ≈ Home-Currency Return

Foreign equity flows, U.S. rates, Bank of Korea policy, exports, global dollar strength, oil prices and risk sentiment can all influence USD/KRW.

But no single variable determines the currency by itself.

3 Key Facts

1. Korea operates a floating exchange-rate system.

Korea progressively liberalized its exchange-rate regime and removed the daily interbank fluctuation band in December 1997, shifting to a free-floating system.

2. The exchange rate is driven by supply and demand.

The Bank of Korea explains that exchange rates are determined through foreign-exchange supply and demand, while economic fundamentals such as relative prices and productivity can matter over longer horizons.

3. Korea's domestic USD/KRW market became far more accessible.

The interbank FX trading session was extended from 09:00–15:30 to 09:00–02:00 in July 2024, and Korea moved to 24-hour interbank FX trading in July 2026.

First: How Do You Read USD/KRW?

This is the most important part.

Currencies are quoted as a pair.

In:

USD/KRW

USD is the first currency.

KRW is the second.

The number tells you:

how many won are required to buy one dollar.

Example 1 — Won Weakness

USD/KRW:

1,350

↓

1,450

A dollar now buys more won.

Therefore:

The U.S. dollar strengthened against the won.

or:

The Korean won weakened against the dollar.

Example 2 — Won Strength

USD/KRW:

1,450

↓

1,350

A dollar now buys fewer won.

Therefore:

The Korean won strengthened.

This sounds simple.

But financial headlines often confuse readers because phrases such as:

"the exchange rate rose"

do not mean:

"the Korean currency rose."

In Korea:

USD/KRW up = KRW down

That rule alone prevents a large number of interpretation errors.

Why Global Investors Should Care About USD/KRW

Consider a U.S.-based investor.

They convert:

USD → KRW

buy a Korean stock,

then later sell the stock and convert:

KRW → USD.

Their final return therefore depends on two things:

Korean equity performance

and

Currency performance.

A Simple Example

Suppose a Korean stock rises:

+10%

in KRW terms.

That sounds good.

But suppose KRW weakens materially against USD over the same period.

The investor's return measured in dollars could be considerably lower.

Alternatively:

Stock:

+10%

KRW:

strengthens

The home-currency return could be higher.

So:

KOSPI return ≠ foreign investor return

unless the currency effect is also considered.

A Simplified Return Framework

Think about the foreign investor return as:

Korean Equity Return + FX Effect

This is not the exact mathematical return formula.

But it is a useful analytical shortcut.

It explains why two investors holding the same Samsung Electronics shares can experience different returns depending on their base currency.

What Moves USD/KRW?

There is no single answer.

The most useful framework is to examine at least seven forces:

Dollar

Interest Rates

Foreign Capital Flows

Trade & Current Account

Oil & Import Costs

China

Risk Sentiment

Let's break them down.

1. The U.S. Dollar

USD/KRW is partly a Korea story.

But it is also a dollar story.

Suppose the dollar strengthens broadly against:

euro
yen
yuan
emerging-market currencies

USD/KRW may rise even if there has been no major deterioration in Korean fundamentals.

This distinction is critical.

A weaker Korean won can reflect:

Korea-specific weakness

or:

broad global dollar strength.

Those are different narratives.

Dollar Strength Is Not Automatically a Korea Crisis

Imagine:

U.S. inflation surprises higher
Treasury yields rise
markets expect tighter Federal Reserve policy
dollar strengthens globally

USD/KRW rises.

The headline could be:

Korean Won Weakens.

Correct.

But concluding:

Korea's economy suddenly deteriorated

would require more evidence.

Always compare KRW with:

DXY
JPY
CNY
other Asian currencies

before assigning a Korea-specific explanation.

2. U.S. and Korean Interest Rates

Interest rates can influence currency flows because investors compare returns available across different markets.

The Bank of Korea explicitly identifies the exchange-rate channel as one way monetary policy affects the economy.

All else equal, higher Korean rates can make won-denominated assets relatively more attractive and support demand for KRW.

But the BOK also emphasizes that monetary transmission is complicated and depends on economic conditions.

So:

BOK raises rates → KRW must strengthen

is too simplistic.

The correct question is:

What did the market expect before the decision?

Expectations Matter More Than the Headline

Suppose the market expects:

+50 bps

but the Bank of Korea raises rates by:

+25 bps.

Even though Korea raised rates, the won could weaken if investors interpret the decision as less hawkish than expected.

Conversely:

no rate hike

does not necessarily weaken KRW

if the market had already priced in no change.

Markets trade differences between:

Expectation

and:

Reality.

The Fed Matters Too

Foreign-exchange analysis is relative.

The relevant question is not simply:

What is the Bank of Korea doing?

It is also:

What is the Federal Reserve doing?

If U.S. yields rise much faster than Korean yields, dollar-denominated assets may become relatively more attractive.

That can create upward pressure on USD/KRW.

But again:

rate differential ≠ automatic currency direction.

Growth, risk sentiment and capital flows can overwhelm the rate effect.

3. Foreign Investor Flows

This is where our previous KMI Guide connects directly.

Foreign investors buying Korean stocks may need:

KRW

to purchase those assets.

Large sustained inflows can therefore support won demand.

Foreign selling can work in the opposite direction.

But the relationship is not mechanical.

Foreign investors can:

hedge FX exposure
use derivatives
transact through different funding structures
buy bonds while selling equities
sell stocks while other capital flows enter Korea

So:

Foreign buying → stronger KRW

is a possible relationship.

Not a law.

Why Foreign Flow and USD/KRW Should Be Read Together

Consider:

Scenario A

Foreign stocks:

strong net buying

KRW:

strengthening

Potential interpretation:

equity inflows and broader risk-on conditions may be reinforcing each other.

Scenario B

Foreign stocks:

strong net buying

KRW:

weakening

Possible explanations include:

broad dollar strength
FX hedging
bond outflows
importer dollar demand
offshore positioning
sector-specific equity buying

This divergence deserves investigation.

For the full framework:

How Foreign Investor Flows Affect Korean Stocks

The key principle is:

Foreign flows show positioning.

They do not automatically forecast USD/KRW or KOSPI direction.

4. Korea's Trade Balance

South Korea is highly integrated into global trade.

Its major exports include areas such as:

semiconductors
automobiles
ships
machinery
petrochemicals
batteries
electronics

Exporters earn foreign currencies.

That creates one source of foreign-exchange supply.

In simple terms:

Korean exporter earns USD

↓

converts some USD into KRW

↓

KRW demand can increase.

But companies do not necessarily convert all export revenue immediately.

They can:

retain dollars
hedge
delay conversion
hold overseas balances

So export growth does not mechanically cause immediate won appreciation.

Trade Balance vs Current Account

These terms are often confused.

Trade Balance

Primarily reflects exports minus imports of goods.

Current Account

Is broader.

It includes items such as:

goods
services
primary income
secondary income

For currency analysis, the current account can provide a more complete picture of external money flows than goods trade alone.

But short-term USD/KRW can still move against the current-account trend because financial flows are often much larger and faster.

Strong Exports Do Not Guarantee a Strong Won

This is especially relevant for Korea.

Suppose:

semiconductor exports boom

but simultaneously:

U.S. dollar strengthens
foreign investors reduce Asian exposure
oil prices surge
Korean investors buy foreign assets

USD/KRW may still rise.

Therefore:

Strong exports ≠ automatically stronger KRW.

The external account is one part of the FX equation.

5. Oil Prices

South Korea imports a substantial share of its energy needs.

Oil therefore matters for:

import costs
trade balance
inflation
corporate margins
dollar demand

When oil prices rise sharply, Korean importers may need more dollars to pay energy bills.

That can create additional USD demand.

A simplified chain can be:

Oil ↑

↓

Import bill ↑

↓

USD demand ↑

↓

Potential KRW pressure

But this relationship is also conditional.

Export performance, hedging and global risk conditions matter.

Why Oil Can Matter to Korean Stocks Too

Higher oil does not affect every company the same way.

Potentially more exposed areas can include:

airlines
logistics
chemicals
utilities
energy-intensive manufacturers

Some companies may pass costs to customers.

Others cannot.

That is why:

Weak KRW + High Oil

can be a particularly important combination for certain domestic businesses.

6. China and the Chinese Yuan

China is one of Korea's most important economic partners.

Korean and Chinese financial conditions can therefore sometimes move together.

Investors frequently compare:

USD/KRW

with:

USD/CNY

or:

USD/CNH.

A weakening yuan can sometimes coincide with won weakness because markets may interpret both through:

Asian trade conditions
China growth expectations
regional risk sentiment

But:

CNY down → KRW must fall

is another oversimplification.

Korea has its own:

monetary policy
trade structure
capital flows
domestic fundamentals.

7. Global Risk Sentiment

The won can behave like a risk-sensitive currency during periods of global stress.

Examples include:

financial crises
geopolitical shocks
sharp equity selloffs
global deleveraging
sudden dollar shortages

During these periods, investors may seek liquidity in major reserve currencies such as USD.

That can push:

USD/KRW higher.

But the magnitude depends on the shock and Korea's own conditions.

Why the Won Can Move More Than Korea's Fundamentals

Financial markets move faster than economies.

Korean GDP does not suddenly change by 5% in one afternoon.

But currencies can move sharply because investors rapidly change:

positioning
hedges
leverage
risk limits
liquidity preferences

This is why FX prices can temporarily move much faster than the underlying economic data.

USD/KRW and Samsung Electronics

A weaker won can potentially affect Samsung Electronics through several channels.

Samsung generates substantial revenue outside Korea.

Foreign-currency revenue translated into KRW can benefit from a weaker won.

But that does not automatically mean:

weaker KRW = higher Samsung earnings.

Samsung also has:

overseas production
imported costs
hedging
multiple currencies
different product-market conditions

Memory prices and demand can matter far more than FX during some periods.

USD/KRW and SK hynix

The same caution applies to SK hynix.

Its earnings are heavily influenced by:

DRAM pricing
HBM demand
product mix
supply
utilization
customer demand

A weaker won may create translation benefits for dollar-linked semiconductor revenue.

But:

FX cannot replace the memory cycle.

For technology background:

What Is HBM? The Investor Guide to AI Memory

What Is DRAM?

Does a Weak Won Help Korean Exporters?

Sometimes.

Not always.

This is one of the most common claims about Korea.

The simple theory is:

KRW weakens

↓

Korean products become cheaper in foreign currency

↓

exporters become more competitive.

But modern global companies are much more complicated.

Why the Exporter Effect Is Complicated

An exporter can have:

Foreign Revenue

Potential positive effect from weaker KRW.

Imported Inputs

Potential negative effect.

Overseas Factories

Local costs may occur outside Korea.

Hedging

Currency positions may already be partially hedged.

Pricing Power

Companies may change foreign-currency prices.

Dollar Debt

Financing costs can change.

Therefore:

Weak KRW can help some exporters under some conditions.

Not:

Weak KRW helps every exporter.

Which Companies May Dislike a Weak Won?

Companies with large imported input costs may face pressure.

Examples can include businesses heavily dependent on:

imported fuel
imported commodities
overseas equipment
dollar-denominated costs

The real impact depends on the company's:

Revenue Currency − Cost Currency.

This is a better framework than categorizing every exporter as a winner.

Strong KRW Can Also Have Winners

A strengthening won can reduce the KRW cost of imported goods.

Potential beneficiaries may include businesses with substantial:

imported raw materials
foreign equipment
fuel costs
dollar liabilities

Again:

Strong KRW ≠ universally bullish or bearish.

Currency exposure is company-specific.

USD/KRW and Inflation

A weaker currency can raise the local cost of imported products.

This matters for:

oil
natural gas
food inputs
machinery
raw materials

That can contribute to inflation.

The Bank of Korea explicitly identifies the exchange-rate channel as part of monetary-policy transmission: won appreciation can reduce KRW-denominated import prices, while depreciation can work in the opposite direction.

That creates a connection:

FX → Import Prices → Inflation → BOK Policy

Why This Matters for the KOSPI

If USD/KRW rises sharply, several effects can occur simultaneously.

Possible negatives:

foreign investor FX losses
inflation concerns
import-cost pressure
risk-off sentiment

Possible positives:

translation benefit for exporters
improved competitiveness in selected industries

The net effect depends on:

why the won weakened
how fast
which companies are exposed
what global markets are doing

Weak Won Because of Strong Dollar vs Weak Won Because of Korea

These are very different situations.

Scenario A — Global Dollar Rally

USD rises everywhere.

KRW weakens alongside:

JPY
EUR
other Asian currencies.

Interpretation:

mostly global FX pressure.

Scenario B — Korea-Specific Weakness

USD/KRW rises sharply while regional currencies remain stable.

Potential causes could include:

Korean capital outflows
domestic political uncertainty
growth concerns
financial-system stress

Interpretation:

Korea-specific risk deserves more attention.

The price move may look similar.

The meaning is not.

How to Tell the Difference

Check:

DXY

Is the dollar broadly stronger?

USD/JPY

Is Japan experiencing similar pressure?

USD/CNY / USD/CNH

Is China moving in the same direction?

Foreign Stock Flows

Are investors pulling capital from Korea?

Korea CDS / Bonds

Are broader Korea-risk indicators deteriorating?

Current Account / Trade

Have external fundamentals changed?

This comparative approach is more useful than looking at USD/KRW alone.

Korea's FX Market Has Changed

This is one area where older Korean-market guides are now outdated.

Until June 2024, Korea's domestic interbank USD/KRW market traded mainly:

09:00–15:30 KST.

From July 2024, trading was extended until:

02:00 the following morning

to improve access for overseas investors and cover more of London and New York trading hours.

Then, in July 2026, Korea launched a 24-hour interbank FX market. The Bank of Korea officially announced the transition as part of the country's continued FX-market reform.

This is particularly important for international investors.

Why 24-Hour FX Trading Matters

Previously, an overseas investor might be able to trade a Korean financial asset when Korean markets were open but face less convenient access to onshore KRW liquidity during other global sessions.

Expanded FX access can help investors:

hedge currency exposure
rebalance portfolios
respond to global events
convert currencies at more convenient times

But:

24-hour access does not eliminate FX risk.

It improves market accessibility.

Those are different claims.

USD/KRW Market vs Your Bank's Exchange Rate

Another common misunderstanding:

The USD/KRW rate you see on a financial terminal is not necessarily the exact exchange rate your bank will offer you.

The Bank of Korea explains that customer rates are determined independently by foreign-exchange banks with reference to movements in the interbank spot exchange rate.

Your actual exchange rate may include:

bank spread
commission
retail pricing
timing differences

Therefore:

Interbank USD/KRW ≠ Retail FX Rate.

Why Reference Rates Can Differ Too

You may encounter several different numbers called:

"the Korean exchange rate."

Examples:

interbank spot rate
basic/reference exchange rate
bank buy rate
bank sell rate
NDF rate

They are related.

They are not identical.

The BOK notes that Korea's basic USD/KRW rate is calculated using a volume-weighted average of previous-business-day interbank transactions and is used as a reference for purposes such as accounting, statistics and taxation.

Always check what rate you are looking at.

What Is an NDF?

Global investors following Korea will often encounter:

KRW NDF

NDF stands for:

Non-Deliverable Forward.

It is a derivative contract commonly used to gain or hedge exposure to currencies without physical delivery of the underlying currency.

Historically, offshore KRW NDF markets were especially important because Korea's domestic FX-market access and trading hours were more restricted.

As onshore market access expands, the relationship between domestic USD/KRW and offshore markets becomes increasingly important.

For a beginner, the key point is:

NDF price is not simply the same thing as today's onshore spot USD/KRW.

What Does USD/KRW Tell Us About Foreign Investors?

USD/KRW can provide useful context.

But it cannot identify the exact reason foreigners bought or sold.

For example:

Foreign selling + KRW weakening

may suggest:

capital outflow
global risk-off
dollar demand

But it does not prove:

foreign selling alone caused the currency move.

Similarly:

foreign buying + stronger KRW

is consistent with capital inflows,

but other FX forces can also be operating.

Use FX as:

corroborating evidence

not:

a single-variable explanation.

The KMI USD/KRW Framework

When USD/KRW moves sharply, ask five questions.

1. DOLLAR

Is the dollar strengthening globally?

Check:

DXY
U.S. yields
Fed expectations

2. FLOWS

What are foreign investors doing?

Check:

KOSPI foreign flows
KOSDAQ flows
bond flows

3. TRADE

What is happening to Korea's external balance?

Check:

exports
imports
current account
semiconductors

4. RISK

Is there a global or Korea-specific shock?

Check:

equities
oil
geopolitical risk
regional currencies

5. POLICY

What are the Fed and Bank of Korea signaling?

Ask:

What changed relative to expectations?

The framework is:

Dollar → Flows → Trade → Risk → Policy

Three Common USD/KRW Scenarios

Scenario 1 — USD/KRW Up + Foreign Selling

Possible interpretation:

global investors are reducing Korean exposure and/or broader dollar demand is rising.

Check whether selling is:

persistent
broad
Korea-specific.

Scenario 2 — USD/KRW Up + Korean Stocks Up

This can happen.

Possible explanation:

exporters are strong
semiconductor earnings expectations improve
broad USD rally outweighs Korean equity inflows

Therefore:

Weak won does not automatically mean weak KOSPI.

Scenario 3 — USD/KRW Down + Foreign Buying

Possible interpretation:

improving capital inflows and risk appetite.

Potentially constructive.

But still check:

concentration
futures
global dollar trend
fundamentals.

Does USD/KRW Predict the KOSPI?

No.

Correlation can exist over certain periods.

But there is no permanent rule such as:

USD/KRW ↑ → KOSPI ↓

every time.

Relationships change depending on the macro regime.

For example:

Risk-Off Environment

Weak KRW and weak stocks may occur together.

Export Boom

Weak KRW and strong exporter earnings can coexist.

Strong Capital Inflow

KRW and Korean equities may strengthen together.

The regime matters.

What USD/KRW Does NOT Prove

USD/KRW rising does not prove Korea is in crisis.

USD/KRW falling does not prove Korean stocks will rise.

Weak KRW does not automatically hurt every Korean company.

Strong KRW does not automatically hurt every exporter.

Foreign selling does not automatically cause every KRW decline.

A BOK rate hike does not guarantee won appreciation.

Strong exports do not guarantee a stronger won.

Currency moves require multiple variables.

Five Indicators to Watch With USD/KRW

For global Korean-market analysis, pair USD/KRW with:

1. Foreign Equity Flows

Capital positioning.

2. U.S. Treasury Yields

Dollar and global-liquidity conditions.

3. DXY

Broad dollar direction.

4. USD/CNY

Regional and China context.

5. Korean Semiconductor Cycle

A major driver of exports and corporate earnings.

Together, they tell a much better story than USD/KRW alone.

A Practical Global Investor Example

Imagine:

KOSPI:

+8%

during one month.

An investor might conclude:

Great month for Korea.

But suppose:

USD/KRW also rises substantially.

The won weakened.

The foreign investor's home-currency return could therefore be meaningfully lower.

Now add:

Foreign flows:

concentrated in semiconductors.

Then the correct interpretation becomes:

Korean large-cap equities performed strongly in KRW terms, led by semiconductor demand, but dollar-based returns were partially offset by currency depreciation.

That is far more informative than:

KOSPI rose 8%.

Why This Matters for KMI

A Korean market analysis that ignores USD/KRW is often incomplete.

KMI therefore treats the currency as one component of a broader system:

Korean Stocks

↕

Foreign Flows

↕

USD/KRW

↕

Global Rates

↕

Exports

The variables interact.

None should automatically be treated as the sole cause.

FAQ

What does USD/KRW mean?

USD/KRW shows how many Korean won are required to buy one U.S. dollar.

If USD/KRW rises, is the won stronger?

No.

USD/KRW rising means the Korean won is weakening against the dollar.

If USD/KRW falls, is the won stronger?

Yes.

Fewer won are required to buy one dollar.

What causes the Korean won to weaken?

Possible factors include:

broad dollar strength
higher U.S. rates
foreign capital outflows
weaker Korean growth expectations
rising oil import costs
global risk aversion

The importance of each factor changes over time.

Does a weak won help Samsung Electronics?

Potentially through foreign-revenue translation or competitiveness.

But Samsung's actual earnings also depend heavily on semiconductor prices, product demand, costs, overseas production and hedging.

Does a weak won help SK hynix?

Potentially, but memory prices, HBM demand, supply and product mix are usually critical factors as well.

Does foreign buying strengthen KRW?

It can increase demand for won.

But hedging and other capital flows mean the relationship is not automatic.

Does the Bank of Korea control USD/KRW?

Korea has operated a floating exchange-rate system since the late 1990s.

The exchange rate is primarily determined by market supply and demand, although authorities can take stabilization measures during periods of disorderly market conditions.

Does Korea's FX market trade 24 hours?

Korea launched 24-hour interbank foreign-exchange trading in July 2026 as part of its market-access reforms.

Related KMI Guides

Coming Next

What Is the Korea Discount?

Now that the KMI Guides cluster covers:

Korean Market Structure
→ Trading Hours
→ Foreign Investors
→ Foreign Flows
→ USD/KRW

the next logical question is:

Why do Korean companies often trade at lower valuation multiples than comparable global companies?

The next KMI Guide will explain:

Korea Discount
corporate governance
chaebol ownership
capital allocation
dividends
buybacks
treasury shares
Value-Up
ROE
why "cheap" does not automatically mean undervalued

Bottom Line

USD/KRW is one of the most important variables for understanding the Korean market.

The first rule is simple:

USD/KRW ↑ = KRW weaker

USD/KRW ↓ = KRW stronger

But explaining why the currency moved requires more work.

Use:

Dollar

↓

Flows

↓

Trade

↓

Risk

↓

Policy

And for foreign investors, remember:

Korean stock return is not the same as home-currency return.

The won can:

amplify equity gains
reduce them
amplify losses
partially offset them

A weak won is not automatically bad for Korean stocks.

A strong won is not automatically good.

And one exchange-rate move does not prove a single narrative.

USD/KRW is evidence about financial conditions — not a standalone verdict on Korea.

Primary Sources

KMI prioritizes primary sources.

Key references for this guide include:

Bank of Korea — Exchange Rate System
Bank of Korea — Foreign Exchange Market Structure
Bank of Korea — Monetary Policy Transmission Mechanism
Bank of Korea — FX Market Structure Reform
Bank of Korea — 24-Hour FX Market Opening
Bank of Korea — FX Market Stabilization Measures

Korea shifted to a free-floating exchange-rate regime in December 1997. The domestic FX market was opened more widely to overseas institutions and its hours were extended in 2024, before Korea launched 24-hour interbank FX trading in July 2026.

Last Updated: August 31, 2026

Korea Market Insight

Evidence Before Narrative

This article is for informational and educational purposes only and does not constitute investment advice.

USD/KRW Explained: Why the Korean Won Matters for Global Investors

30-Second Answer

USD/KRW rises

USD/KRW falls

3 Key Facts

1. Korea operates a floating exchange-rate system.

2. The exchange rate is driven by supply and demand.

3. Korea's domestic USD/KRW market became far more accessible.

First: How Do You Read USD/KRW?

Example 1 — Won Weakness

Example 2 — Won Strength

Why Global Investors Should Care About USD/KRW

Korean equity performance

Currency performance.

A Simple Example

A Simplified Return Framework

What Moves USD/KRW?

1. The U.S. Dollar

Dollar Strength Is Not Automatically a Korea Crisis

2. U.S. and Korean Interest Rates

Expectations Matter More Than the Headline

The Fed Matters Too

3. Foreign Investor Flows

Why Foreign Flow and USD/KRW Should Be Read Together

Scenario A

Scenario B

Read More

4. Korea's Trade Balance

Trade Balance vs Current Account

Trade Balance

Current Account

Strong Exports Do Not Guarantee a Strong Won

5. Oil Prices

Why Oil Can Matter to Korean Stocks Too

6. China and the Chinese Yuan

7. Global Risk Sentiment

Why the Won Can Move More Than Korea's Fundamentals

USD/KRW and Samsung Electronics

USD/KRW and SK hynix

Does a Weak Won Help Korean Exporters?

Why the Exporter Effect Is Complicated

Foreign Revenue

Imported Inputs

Overseas Factories

Hedging

Pricing Power

Dollar Debt

Which Companies May Dislike a Weak Won?

Strong KRW Can Also Have Winners

USD/KRW and Inflation

Why This Matters for the KOSPI

Weak Won Because of Strong Dollar vs Weak Won Because of Korea

Scenario A — Global Dollar Rally

Scenario B — Korea-Specific Weakness

How to Tell the Difference

DXY

USD/JPY

USD/CNY / USD/CNH

Foreign Stock Flows

Korea CDS / Bonds

Current Account / Trade

Korea's FX Market Has Changed

Why 24-Hour FX Trading Matters

USD/KRW Market vs Your Bank's Exchange Rate

Why Reference Rates Can Differ Too

What Is an NDF?

What Does USD/KRW Tell Us About Foreign Investors?

The KMI USD/KRW Framework

1. DOLLAR

2. FLOWS

3. TRADE

4. RISK

5. POLICY

Three Common USD/KRW Scenarios

Scenario 1 — USD/KRW Up + Foreign Selling

Scenario 2 — USD/KRW Up + Korean Stocks Up

Scenario 3 — USD/KRW Down + Foreign Buying

Does USD/KRW Predict the KOSPI?

Risk-Off Environment

Export Boom