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Stronger Won Shifts Sector Fortunes: Airlines and Steel Gain, Autos and Tech Face Headwinds
Transportation · Airlines · yonhap_finance · 2026-09-05
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As the KRW/USD exchange rate drops to the 1,350 level, sectors like airlines and steel benefit from lower costs, while exporters like autos and tech struggle.
What Happened
Exchange Rate Context: The KRW/USD exchange rate has plummeted nearly 13% in the third quarter, reaching the 1,350 level. This rapid appreciation of the won is driven by increased dollar supply from strong exports and a broader global trend of a weaker dollar.
Beneficiary Sectors: Airlines and steel companies are emerging as primary beneficiaries of the stronger won. Airlines are seeing reduced fuel costs—which are typically settled in dollars—while steelmakers benefit from lower import costs for raw materials, boosting their profit margins.
Struggling Sectors: Conversely, the automotive and IT sectors are facing potential earnings headwinds. A stronger won reduces the value of overseas revenue when converted back to local currency, and semiconductor companies, which have significant domestic cost structures, are particularly vulnerable to margin compression.
Future Outlook: Analysts suggest the exchange rate could potentially fall to the low 1,300s, though they warn that shifts in U.S. interest rate policy and global economic conditions could reverse this trend. Investors are advised to closely monitor external macroeconomic variables.