Won Rally Clouds Earnings Outlook for Automakers, Chipmakers
3 Articles
3 Articles
Won rally clouds earnings outlook for automakers, chipmakers
A sharp rise in the Korean won’s value against the dollar is clouding the earnings outlook for the nation’s major exporters, including automakers and chipmakers, according to market analysts Tuesday. In broad terms, a stronger local currency offers welcome relief to the broader economy by easing inflationary pressures and lowering import costs. The main concern, however, is the speed of the change. A rapid rise in the won can lead to unexpected …
As the won-dollar exchange rate falls below 1,350 won and the won strengthens at an unusual pace, concerns are rising that the operating profits of export companies in sectors such as semiconductors and automobiles will decline when converted to won. According to the Bank of Korea's economic statistics system on the 8th, the won-dollar exchange rate, based on the weekly closing price, reached its yearly high on July 2 (1,555
The domestic automotive industry, which had barely weathered the risk of summer labor disputes that emerged during this year's wage and collective bargaining process and was accelerating the normalization of production, has encountered a massive, unexpected setback in the form of a strong won (falling won-dollar exchange rate). Given the industry's structure, where exports account for anywhere from the 60% range to over 98% of total sales, a sha…
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