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NH Securities: Samsung and SK Hynix Shareholder Returns Could Push Won Higher
Electronic Technology · Semiconductors · yonhap_finance · 2026-08-26
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NH Investment & Securities suggests that massive shareholder return plans from Samsung and SK Hynix may drive the USD/KRW exchange rate down to 1,340-1,350.
What Happened
Exchange Rate Outlook: NH Investment & Securities analysts suggest that the significant shareholder return initiatives by Samsung Electronics and SK Hynix are likely to exert downward pressure on the USD/KRW exchange rate. The firm projects an initial support level for the pair between 1,340 and 1,350 KRW.
Impact of Shareholder Returns: SK Hynix’s 40 trillion KRW buyback plan and Samsung’s 90-110 trillion KRW return package represent a combined capital commitment exceeding 150 trillion KRW. This massive allocation is expected to influence foreign exchange market dynamics as companies potentially convert dollar holdings to fund these programs.
Conversion Dynamics: While the conversion of dollar holdings into won is a primary driver for the projected currency appreciation, analysts note that the actual impact may be tempered. Companies may utilize existing won-denominated cash reserves, and foreign investors repatriating dividends could offset some of the downward pressure on the dollar.
Market Implications: Estimates suggest that roughly 40% to 50% of the total return funds might be converted into won, a volume comparable to recent ADR-related transactions. Consequently, the market is bracing for a potential strengthening of the Korean Won in the near term as these corporate actions proceed.