Analysts say unprecedented shareholder-return programs at two major South Korean
chipmakers are becoming a key driver of the won. If the firms raise won
domestically for dividends and buybacks by selling dollars elsewhere, it could
extend the won's recent rally — a 40-trading-day rebound since early July, the
fastest since end-2022 — and this week the currency broke the 1,400-per-dollar
level for the first time in over ten months. Hanwha Investment & Securities
Economist Choi Kyuho said companies must pay returns in won and may sell large
dollar holdings to raise local currency. CITIGROUP added that if overseas equity
investors repatriate proceeds, roughly half of the shareholder-return funds
could be converted back into dollars, but overall the programs should be net
positive for the won as firms convert more export receipts into local currency.
