KRW strengthens despite a 6% KOSPI decline as foreign investors buy Korean equities funded by USD sales.
The South Korean won rallied to the mid-1380s against the USD, defying a nearly 6% drop in the KOSPI index led by semiconductor losses. Foreign investors capitalized on the equity correction, purchasing Korean stocks and selling USD to fund the trades.
The KRW had previously been supported by solid economic fundamentals and rising terms of trade due to surging memory prices. However, volatility in tech stocks and a less undervalued won may temper further gains.
No immediate market reaction was specified, but the divergence between equity declines and currency strength highlights investor confidence in Korean assets.