South Korea's Won Drops 11% to 2008 Low as AI Chip Boom Lifts Stocks
Updated
Updated · South China Morning Post · Jun 4
South Korea's Won Drops 11% to 2008 Low as AI Chip Boom Lifts Stocks
2 articles · Updated · South China Morning Post · Jun 4
Summary
An 11% slide against the dollar over the past year has left the won at its weakest level since the 2008 global financial crisis, even as South Korea benefits from the AI-driven semiconductor boom.
That disconnect has emerged despite a massive current-account surplus, chip-sector dominance during a global shortage and Asia's best-performing stock market—factors that would normally support the currency.
Foreign investors are still pulling money out, underscoring how the tech rally lifting Korean equities has not translated into support for the won.
The divergence highlights South Korea becoming a victim of its own success: the same AI chip boom powering growth and stocks is coinciding with unusual currency weakness.