In an analysis report released on the 18th, Korea Investment Securities reported that with the sharp decline in the KRW‑USD exchange rate, concerns over the profitability of export‑oriented companies have increased, while domestic financial stocks are viewed as a stable alternative. In particular, as prices for goods and services fall relative to the dollar, Korean firms are easing their financing burden due to stronger won. At the same time, it was noted that food and shipping industries require differentiated strategies to secure global competitiveness.
According to the analysis report, the export‑based profits of top KOSPI companies fell by about 4%. This is especially pronounced in sectors sensitive to exchange rate fluctuations such as energy, materials, manufacturing and information technology (IT). As the dollar value falls, prices of exported goods rise and firms incur higher cost burdens, putting pressure on their profitability.
The reason financial stocks are seen as a safe haven is that domestic financial institutions have relatively stable structures against exchange‑rate volatility. Moreover, Korea’s financial system offers various products and services that minimize foreign‑exchange usage and ease the financing burden of export companies. In this regard investors should pay attention to domestic financial stocks.
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