South Korea's Deputy Finance Minister Moon Jisung said on Tuesday that the won may rise further, driven by an increase in corporate dollar forward sales later this year. The Korean won has recently strengthened against the US dollar, but it is still below the level appropriate for South Korea's economic fundamentals Moon said that South Korea expects a “major shift” in capital flows in the second half of the year; market conditions such as dollar inflows related to SK Hynix ADR indicate that market capital flows are undergoing more extensive changes. Moon said that corporate dollar forward sales are expected to increase further in the third quarter; he also predicts that South Korean companies will increase the scale of spot and forward dollar sales, especially in the semiconductor industry. “If the company's cash and forward dollar sell-off momentum increases, it may also change the sentiment of retail investors and further accelerate the appreciation of the Korean won,” Moon said.

South Korea's Deputy Finance Minister Moon Jisung said on Tuesday that the won may rise further, driven by an increase in corporate dollar forward sales later this year. The Korean won has recently strengthened against the US dollar, but it is still below the level appropriate for South Korea's economic fundamentals Moon said that South Korea expects a “major shift” in capital flows in the second half of the year; market conditions such as dollar inflows related to SK Hynix ADR indicate that market capital flows are undergoing more extensive changes. Moon said that corporate dollar forward sales are expected to increase further in the third quarter; he also predicts that South Korean companies will increase the scale of spot and forward dollar sales, especially in the semiconductor industry. “If the company's cash and forward dollar sell-off momentum increases, it may also change the sentiment of retail investors and further accelerate the appreciation of the Korean won,” Moon said.