South Korean Won Falls Further on Tech Rout

2026-10-15 04:43 By Erika Ordonez 1 min. read

The South Korean won traded around 1,347 per dollar, extending losses as the global semiconductor sell-off intensified risk aversion and prompted investors to retreat from the region's technology-heavy markets.

Concerns over elevated AI valuations, high borrowing costs and the financing needs of massive AI infrastructure investments triggered a prolonged decline in US chip stocks, spilling over into South Korean equities and weighing on the currency.

Foreign investors sold around $1.8 billion in KOSPI shares on Thursday morning alone, taking October outflows above $10 billion and increasing demand for dollars as capital exited local markets.

Additionally, hotter-than-expected US inflation, with annual CPI reaching 3.7% in September against a 3.6% forecast, reinforced concerns over further Federal Reserve tightening, adding to uncertainty across financial markets.

However, a pullback in US Treasury yields and oil prices help limit the won’s losses.



News Stream
South Korean Won Falls Further on Tech Rout
The South Korean won traded around 1,347 per dollar, extending losses as the global semiconductor sell-off intensified risk aversion and prompted investors to retreat from the region's technology-heavy markets. Concerns over elevated AI valuations, high borrowing costs and the financing needs of massive AI infrastructure investments triggered a prolonged decline in US chip stocks, spilling over into South Korean equities and weighing on the currency. Foreign investors sold around $1.8 billion in KOSPI shares on Thursday morning alone, taking October outflows above $10 billion and increasing demand for dollars as capital exited local markets. Additionally, hotter-than-expected US inflation, with annual CPI reaching 3.7% in September against a 3.6% forecast, reinforced concerns over further Federal Reserve tightening, adding to uncertainty across financial markets. However, a pullback in US Treasury yields and oil prices help limit the won’s losses.
2026-10-15
South Korean Won Rises Near 2-Year High
The South Korean won traded around 1,337 per dollar, approaching a recent two-year high, supported by a weaker dollar and continued exporter dollar sales. The dollar weakened further as investors cautiously awaited the US September inflation report for fresh signals on the Federal Reserve’s next policy move. Markets are assigning an 88% probability to a rate hike in December. Strong semiconductor exports also continued to underpin foreign currency inflows, as chip exports exceeded USD 60 billion for the first time in September and local chipmakers converted overseas earnings into won. Meanwhile, elevated oil prices remained a risk, as higher energy import costs could widen Korea’s trade deficit and increase demand for dollars. Persistent foreign portfolio outflows also remained a headwind, with overseas investors recording six consecutive sessions of net selling and offloading a cumulative KRW 13.14 trillion in South Korean shares.
2026-10-14
South Korean Won Retreats from 2-Year High
The South Korean won traded around 1,342 per dollar, reversing after touching its strongest level since October 2024, as a stronger US dollar and rising oil prices weighed on the currency. The dollar index held near its highest level since April 2025, amid heightened geopolitical uncertainty and concerns over renewed inflationary pressures. Oil prices extended their gains for a third session as fresh attacks on Saudi Arabia followed a deadly strike on Riyadh's airport. Continued Russian strikes raised further questions over the energy truce with Ukraine. Brent crude climbed above USD 106 per barrel, adding to concerns over South Korea's energy import bill. Investors are also awaiting September US CPI data due this week for further clues on the Federal Reserve's policy outlook. Meanwhile, continued dollar selling by local exporters, particularly semiconductor companies converting overseas earnings into won, helped limit the currency's retreat.
2026-10-13