Possibility of KRW/USD Exchange Rate Entering the 1350s

The KRW/USD exchange rate has fallen below 1400 won, raising the possibility of entering the 1350s. On the 20th, the exchange rate in the Seoul foreign exchange market was 1389 won, down 8.7 won from the previous day. There are analyses suggesting that the demand for currency exchange from semiconductor companies and the trade surplus are strengthening the dollar supply advantage. From January to July this year, the trade surplus reached 167.8 billion dollars, with monthly surpluses exceeding 30 billion dollars in June and July. Park Sang-hyun, a researcher at iM Securities, explained that the dollar supply advantage is increasing downward pressure on the exchange rate. The shareholder return policies of Samsung Electronics and SK Hynix are contributing to an increase in dollar selling volume, and SK Hynix announced a share buyback and cancellation plan worth 40 trillion won on the 19th. Additionally, the demand for currency exchange for corporate tax prepayments and government investments related to large-scale projects are also factors expanding the currency exchange volume. Park expects the KRW/USD exchange rate to fall to the 1350s, noting that this is merely a securities analysis and not a definitive figure determining the actual direction of the exchange rate.

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