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 companie

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.