Won's Slide Boosts Airlines, Hurts Shipping as Food Sector Struggles

The South Korean won has dropped to around 1,358.4 against the US dollar, prompting contrasting fortunes in various sectors.

Airlines are expected to benefit from this trend, as they have a high proportion of won-denominated settlements.

According to Kim Young-ho, an analyst at Samsung Securities, a nearly 9% drop in the exchange rate can improve the net income of Korean Air, Jin Air, Jeju Air, and Trinity Airlines by approximately 750 billion won, 34 billion won, 78 billion won, and 40 billion won, respectively.

However, shipping companies are concerned that their revenue will decline due to the strong dollar, as they collect freight rates in dollars.

The food sector is facing a dilemma, as while lower import prices can benefit food companies with imported raw materials, those seeking to expand into overseas markets may need to raise export prices, potentially undercutting their competitiveness.