#chips semiconductors

Korea’s Weak Won Is Exposing a Policy Credibility Problem

South Korea’s won is trading near crisis-era lows even as AI-driven semiconductor demand has produced a record external surplus and a historic rally in chip stocks. The pressure reflects a capital-flow puzzle: exporters are earning dollars, foreign investors are selling Korean equities, and chipmakers may be keeping more revenue offshore. The political risk is that Seoul treats the currency slide as a temporary market anomaly rather than a warning about policy credibility, asset inflation and dependence on a semiconductor cycle.