Barclays economist Bum Ki Son warned recent appreciation of the South Korean won
versus the dollar could trim Q2 GDP growth by about 20bps and reduce GDI growth
by as much as 200bps. He said non-tech firms are particularly exposed because
the same amount of overseas sales converts into fewer won; non-tech companies
make up 26% of net profit among firms KOSPI-listed but could account for roughly
66% of FX translation losses in Q3. FactSet shows the won has strengthened more
than 5% against the dollar over the past month.
