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.
