South Korean Won Lags Despite Kospi’s 150% Rally on AI Chip Boom
Updated
Updated · Bloomberg · May 21
South Korean Won Lags Despite Kospi’s 150% Rally on AI Chip Boom
4 articles · Updated · Bloomberg · May 21
South Korea’s won remains one of Asia’s weakest currencies even as the Kospi has surged more than 150% over the past year.
AI-driven demand for chips from SK Hynix and Samsung Electronics has powered that equity rally, making South Korea’s benchmark stock market the world’s top performer among major indexes.
The gap is unusual for an export-led economy, where strong stock gains typically coincide with a firmer currency.
That divergence underscores how South Korea’s stock boom has not translated into broader support for the won despite the country’s central role in the global AI trade.
As its AI stocks boom, why is South Korea's currency collapsing, and what does this paradox signal globally?
Is South Korea's tech dominance a fragile miracle, highly vulnerable to distant geopolitical conflicts and supply chain disruptions?
Will Korea's strategic shift to elite AI chips create a global shortage of memory for everyday consumer technology?