South Korea’s currency and equity markets are drawing broad support from export strength and a booming semiconductor sector, according to separate analyses from DBS Group Research and ING.
DBS Group Research said the South Korean won is underpinned by robust export performance, particularly in semiconductors and autos. The bank noted that sustained demand for South Korean products has helped narrow the trade deficit and stabilize the currency. The KOSPI has also benefited, with export-oriented corporate earnings surpassing expectations and attracting domestic and foreign investors.
ING added that the Bank of Korea’s relatively hawkish monetary policy stance compared with the US Federal Reserve has narrowed the interest rate differential that previously pressured the won. Combined with strong global demand for South Korean memory chips, this has improved the currency’s outlook and contributed to a healthier trade balance.
Both institutions caution that risks remain, including a global economic slowdown, a reversal in tech demand, geopolitical tensions, or a more hawkish Federal Reserve. Still, the current fundamental backdrop provides a measure of resilience for the won and keeps the KOSPI on a positive trajectory.
