[News Today] KRW/USD RATE SOARS, KOSPI DROPS

[LEAD]
The Korean won closed at a weakened price against the U.S. dollar yesterday, breaking the 1,400 mark. A stronger dollar, fueled by Donald Trump's America-first stance, has pushed up the exchange rate. With semiconductor concerns also in play, the KOSPI has fallen below 2,500 for the first time in three months.

[REPORT]
On Tuesday, the value of the Korean won against the U.S. dollar recorded 1,403.5 won, surpassing the psychological barrier of 1,400 won. It was the highest closing price in two years.

Like Korea, Taiwan, a major semiconductor supplier to the U.S., and Mexico, which suffered economic hits during Donald Trump’s first term, have both seen their exchange rates rise.

Concerns are growing that higher tariffs during Trump's second term could further propel prices and interest rates, keeping the U.S. currency strong.

Moon Jung-hee / Kookmin Bank
A Republican House win means Trump's policies will gain momentum. Markets are already factoring in 70-80% of his policies.

The so-called "Trump trade" phenomenon, whereby money flows into virtual assets and the U.S. stock market, will get more severe over time.

The three major indexes on Wall Street have soared to record highs. Korea's benchmark KOSPI plummeted below 2,500 on Tuesday for the first time in three months due to the strong dollar and concerns over sluggish chip exports.

Seo Sang-young / Mirae Asset Securities
Concerns over the U.S.-China trade dispute, a semiconductor peak are pushing our stock market down.

Because of changes in the U.S. trade policies, rising concerns about Korean businesses, which rely heavily on exports to the U.S., are also contributing to the jittery stock market.