Key facts
- The Korean won strengthened to a two-year high against the dollar at 1,330 won levels, compared with around 1,550 won in July.
- Corporate tax revenue estimates already place considerable weight on chipmakers' performance.
- The government plans to launch a new sovereign wealth fund next year with at least 20 trillion won ($14.9 billion).
South Korean Finance Minister Lee Hyoung-il stated on Friday in Bangkok that the Korean won's sharp decline against the U.S. dollar earlier in 2026 was out of line with the country's strong economic fundamentals. The won has since strengthened to a two-year high of around 1,330 won per dollar, compared to approximately 1,550 won in July. Lee indicated that the current exchange rate is moving more in line with economic fundamentals, though he added that the government will continue to monitor external conditions closely. He also mentioned that currency swap arrangements could serve as a robust safety net for the foreign exchange market. Regarding the stock market, which has seen corrections, Lee attributed it to concerns over rising global interest rates, the sustainability of AI and semiconductor investment returns, and geopolitical risks. He emphasized the need to find new growth engines beyond semiconductors and mentioned plans to launch a new sovereign wealth fund next year with at least 20 trillion won to invest in strategic industries. The ministry is also gathering opinions on plans to tax cryptocurrency starting in 2027.