South Korean won slides nearly 6% as foreign investors dump equities

The South Korean won has weakened by almost 6 percent against the U.S. dollar in the first half of 2026, with the average rate recorded at 1,484.56 won per dollar. This marks the second‑highest first‑half average on record, behind the 1998 Asian‑financial‑crisis peak of 1,493.08. The depreciation follows a sharp outflow of foreign capital from Korean equities. From the start of the year through early July, foreign investors sold a net 156‑157 trillion won (about $102 billion) of KOSPI shares, a volume more than five times the total net foreign selling recorded throughout 2008. Their share of KOSPI ownership rose to 40.5 percent as the market rallied, but analysts warn that further rebalancing could trigger additional sell‑offs of up to 260 trillion won if foreign ownership falls to around 35 percent. The continued outflows, concentrated in semiconductor giants Samsung Electronics and SK Hynix, have amplified pressure on the won and raised concerns about liquidity and market stability.