How South Korea’s stock boom sparked a currency crisis South Korea’s currency, the won, is experiencing significant volatility as investors withdraw funds following a substantial stock market rally driven by AI demand for semiconductors. This outflow of capital is pressuring the won, leading to government intervention to curb excessive fluctuations. The currency’s plunge is impacting the real economy, particularly South Korea’s ability to import energy.

• South Korea’s stock market has seen explosive growth, with the KOSPI index up significantly year-to-date.
• Major chip companies like Samsung Electronics and SK Hynix have seen substantial share price increases.
• Foreign investors are withdrawing profits or rebalancing portfolios, leading to sales of South Korean won.
• This selling pressure is causing the won to depreciate against other currencies.
• The South Korean government has vowed action to address “excessive volatility” in the currency and government bonds.
• The currency’s fall affects the real economy, including the cost of energy imports amidst global conflicts. Continue reading https://www.axios.com/2026/06/05/korea-stocks-currency-ai