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Commerzbank highlighted that South Korea's benchmark Kospi index has staged an impressive rebound of nearly 30% from its late July lows. This strong recovery has been primarily driven by robust corporate earnings in the technology sector, alongside renewed investor optimism surrounding memory chipmakers and semiconductor manufacturers. From a market perspective, the surge in equity valuations is attracting substantial foreign capital inflows into South Korean financial markets. Concurrently, domestic exporters are converting foreign earnings into local currency, providing strong structural support for the South Korean Won (KRW) against major trading pairs. Looking ahead, market participants should monitor whether the current momentum in global technology demand remains sustainable. Continued strength in semiconductor exports will be crucial to maintaining foreign portfolio inflows and driving further appreciation for the South Korean currency.
