FX.co ★ SK Won Slips on Soft Trade Terms, Sector Weakness

The South Korean won weakened to approximately 1,381 per dollar on Thursday, pulling back from a two-day rise due to escalating concerns regarding deteriorating trade conditions, declining exports, and weakened demand in the tech sector. Investors analyzed recent official data indicating that export prices decreased by 4.3% year-on-year in July. This decline was driven by lower manufacturing prices and the lingering impact of U.S. tariffs on Korean goods, now limited to 15% following a partial trade agreement. In parallel, import prices fell by 5.9% compared to the previous year, influenced by higher global oil prices and a softer won. Significant losses among leading exporters, notably in the technology and transportation sectors, highlighted ongoing market pessimism towards these pivotal sectors for South Korea’s trade surplus. This raises concerns regarding export revenues and foreign currency inflows. Market participants are now focusing on forthcoming trade data for insights into whether external demand might stabilize in the coming months.