SK Hynix ADR listing brings in $28 billion… Won-Dollar exchange rate plunges to the 1,440 won range

On the other hand, Dollar-Yen exchange rate exceeds 164 yen for the first time in 40 years, entering the 800 won range for Won-Yen

July exchange amount at top 5 banks hits 31.5 billion yen, a sharp increase of 7.8 billion yen from the previous month… Vacation and currency investment demand overlap


As the currency coupling phenomenon between the South Korean won and Japanese yen breaks down, the Won-Yen exchange rate has entered the 800 won range per 100 yen. Due to historic weak-yen phenomena overlapping with summer vacation overseas travel demand and investment demand aiming for exchange rate gains, commercial banks' yen exchange volume recorded its highest in 1 year and 7 months.


According to the financial sector on the 29th, the total yen exchange amount of the five major commercial banks (KB Kookmin, Shinhan, Hana, Woori, NH Nonghyup) from the 1st to the 27th of this month was tallied at 31.5 billion yen (approx. 280 billion won). This is a sharp increase of 7.8 billion yen compared to the same period last month, marking the largest scale since December 2024 (32.2 billion yen). Monthly exchange amounts, which hovered around 21 to 27 billion yen in the first half of this year, bounced back explosively in July.


At the root of this phenomenon lies the macroeconomic variable of SK Hynix's American Depositary Receipt (ADR) listing on the US stock market. Due to the listing on the 10th, a massive supply of $28 billion flowed into the domestic market, causing the Won-Dollar exchange rate to plummet from the 1,550 won range to the 1,440 won range (rise in won value).


Meanwhile, the value of the yen is plunging endlessly. As of the 23rd, the Dollar-Yen exchange rate approached 164 yen, breaking a record high in about 40 years since December 1986. As a 'decoupling' market trend played out where the Korean won strengthened and the Japanese yen weakened, the Won-Yen exchange rate naturally dropped to the 800 won range.


Triggered by low-point buying sentiment, yen deposits also showed an upward trend. As of the 27th, the yen deposit balance of the five major banks stood at 978.1 billion yen, with 693 billion yen flowing in this month alone. However, as long-term weak-yen forecasts solidify, the balance falls short of the level seen in January and February of this year when it exceeded 1 trillion yen.