Korean Won Surges Amid Samsung and SK Hynix Sell-Off

Market Weakness Amid Holiday Reopening

The benchmark KOSPI fell more than 3%, erasing about 162.7 trillion won in value, according to Bull Theory. The KOSDAQ fell more steeply, dropping 4.29% from its previous close to 853.98. Foreign investors drove much of Monday's selling, offloading a net 458 billion won in KOSPI shares by 9:55 a.m., according to the Asia Business Daily.

Divergence Between Won and Chip Stocks

The divergence emerged as Seoul's markets reopened after a three-day holiday. Both the benchmark KOSPI and the tech-heavy KOSDAQ posted losses. SK Hynix shares fell 3.81% to 1.617 million won, while Samsung Electronics declined 3.63% to 252,500 won, according to Google Finance data.

Factors Behind the Sell-Off

Analysts have credited the sell-off to escalating Middle East tensions and concerns that artificial intelligence stocks have become overheated. Corporate support may also be fading. Samsung and SK Hynix are winding down share buybacks worth a combined 55 trillion won.

Strong Won Amid Dollar Weakness

Meanwhile, the won strengthened as much as 0.8% from its previous close to 1,333.30 per dollar, Bloomberg reported. It later trimmed the gain to 0.5%. Min Gyeong-won, an economist at Woori Bank in Seoul, tied the move to broader dollar weakness. 'The won is strengthening in line with broad dollar weakness as the euro, pound and yen all gain on lower oil prices,' Gyeong-won said.

Export-Driven Strength and AI Concerns

The won has gained 7.7% since January on strong exports and corporate dollar selling. Exporters' dollar sales can boost demand for the won, while chip stocks remain vulnerable to foreign investor outflows, fading buyback support, and concerns over AI valuations. Subscribe to our YouTube channel to watch leaders and journalists provide expert insights