SK Won Slips on Soft Trade Terms, Sector Weakness

The South Korean won weakened to around 1,381 per dollar on Thursday, retreating from a two-day gain amid concerns over worsening trade terms, slowing exports, and subdued tech demand. Investors assessed official data showing export prices fell 4.3% year-on-year in July, weighed down by lower manufacturing prices and the lingering effects of US tariffs on Korean goods, now capped at 15% following a partial trade deal. Import prices also dropped 5.9% from a year earlier, reflecting higher global oil costs and a softer won. Additionally, sharp losses among major exporters, particularly in technology and transportation, underscored persistent market pessimism toward sectors that drive South Korea’s trade surplus, raising risks to both export revenue and foreign currency inflows. Traders are now turning their focus on upcoming trade data for signals on whether external demand can stabilize in the months ahead.