South Korean Won Surges to Six-Month High on Strong Exports

South Korea's won has reached its strongest level since mid-September 2025 as the US dollar remains soft. The dollar's weakness is attributed to concerns about rising developed-market debt and a move by the US Treasury to double the size of its buybacks of longer-term government bonds.

The softer dollar has given Asian currencies some breathing room, but South Korea's won has also benefited from strong exports. The country's semiconductor exports have been robust, with a 56% year-on-year increase in the first 20 days of August, driven by record chip shipments.

However, currency strength does not necessarily translate to happy equity markets. South Korea's KOSPI fell 3%, and Samsung Electronics slid more than 9% after investors were underwhelmed by its $79 billion shareholder-return plan.