# South Korean Won Rallies Near Two-Year High as September Exports Soar

- URL: https://stocks.freetheai.org/news/south-korean-won-rallies-near-two-year-high-as-september-exports-soar-01a584
- Published: 2026-10-19T05:09:39Z
- Category: forex; sentiment: mixed; impact: medium
- Symbols: [FX_IDC:USDKRW](https://stocks.freetheai.org/symbols/FX_IDC-USDKRW), [VANTAGE:USDKRW.TV](https://stocks.freetheai.org/symbols/VANTAGE-USDKRW.TV)
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The South Korean won strengthened toward 1,330 per U.S. dollar, hovering near its highest level since October 2024. The currency was supported by robust U.S. dollar inflows from domestic exporters following record-breaking trade performance in September.

South Korea's exports jumped 83.5% year-over-year in September to a record $120.94 billion, boosted by a 263% surge in semiconductor shipments. The country maintained an average daily trade surplus near $2.5 billion. Meanwhile, U.S. Treasury yields fell toward four-week lows after Federal Reserve Chair Kevin Warsh avoided giving explicit policy signals, leading markets to price in an 84% chance of unchanged interest rates this month.

Despite export strength, potential risks lie ahead for the currency. Foreign investors pulled a net 11.21 trillion South Korean won from KOSPI equity markets last week due to concerns over artificial intelligence investments and rising memory chip competition from China. Additionally, ongoing tensions in the Middle East and attacks on commercial ships in the Strait of Hormuz continue to elevate oil supply disruption risks.

## Key points

- The South Korean won traded near 1,330 per U.S. dollar, reaching its highest level since October 2024.
- September exports surged 83.5% year-on-year to a record $120.94 billion, driven by a 263% jump in chip sales.
- U.S. Treasury yields declined as markets priced in an 84% probability of the Federal Reserve keeping rates steady.
- Foreign investors net sold 11.21 trillion won in KOSPI equities last week amid chip competition and AI concerns.

## Questions and answers

### Why is the South Korean won rising?

The South Korean won is strengthening due to dollar supply from exporters following record September exports, along with falling U.S. Treasury yields.

### What drove South Korea's record September exports?

South Korea's September exports reached a record $120.94 billion, driven primarily by a 263% year-over-year surge in semiconductor shipments.

### What risks are affecting South Korea's financial markets?

Risks include 11.21 trillion won in net foreign stock selling on KOSPI last week, AI investment concerns, Chinese memory chip competition, and Middle East oil supply risks.