The Korean won rises to nearly an 11-month high, with ING Group suggesting its rebound could serve as a reference for the yen.

⑴ ING strategists pointed out that the Korean won has rebounded to nearly an 11-month high against the US dollar, and its appreciation trajectory could offer a reference for the yen. Previously, Korea also faced challenges in dealing with large-scale capital outflows and currency weakness.⑵ The institution believes that what ultimately proved effective was not a single intervention measure, but rather the fermenting of Korea’s domestic growth story. The boom in AI investment and exports has permeated broader sectors of the economy, supporting robust second-quarter GDP figures and creating conditions for the central bank to raise interest rates in July.⑶ As domestic yields improved, exporters' confidence in repatriating overseas earnings has significantly increased, further strengthening the won. This reflects the intrinsic logic of attracting capital inflows through growth and interest rates.⑷ In terms of lessons learned, the rebound of the won suggests that creating an attractive investment environment domestically and boosting the currency through fundamental improvements is a sustainable and effective pathway, rather than relying on short-term intervention measures.