FX.co ★ South Korean Won Weakens on Foreign Outflows

The South Korean won weakened to around 1,342 per dollar, erasing recent gains as heavy foreign selling of local equities—especially semiconductor stocks—boosted demand for the US dollar. Foreign investors offloaded a net KRW 1.26 trillion in South Korean shares, while the KOSPI slumped nearly 4% amid concerns that a Democrat-controlled US Congress could impose stricter regulations on AI and data centers. The sharp downturn triggered a sell-side sidecar on the Korea Exchange, halting program trading in KOSPI-listed stocks for five minutes.

The won’s slide came despite overall dollar softness and a record current account surplus of $61.46 billion in September, supported by strong semiconductor exports. Year to date, the won has depreciated 6.95% against the US dollar.