The continued decline in the currency exchange rate and exports has put tremendous pressure on the Korean economy. In response to this situation, South Korea** has taken a series of measures to rescue the market, but it has failed to achieve the expected results. This raises the question of whether South Korea will once again side with the United States. After investigation, it was found that the shareholding structure of many Korean companies has become very complex, and many of the shareholders behind it have changed from South Korea to the United States. This has raised questions for some netizens, do these companies want South Korea to cooperate with the United States in harvesting?And for the United States, the opportunity for harvesting seems to be gradually emerging. The South Korean won fell below 00008, one won can only be exchanged for less than 0008 USD. This fluctuation in the exchange rate has been going on for three years. Since 2020, the United States has begun to print a large number of dollars, resulting in a continuous increase in the dollar index. However, even during this time, the exchange rate of the South Korean won against the US dollar continued**. It's unbelievable. Later, the U.S. raised interest rates, non-U.S. currencies were generally **, and the South Korean won fell even more severely. The continued exchange rate of the South Korean won** has led directly to a situation where the same dollar can buy more South Korean assets, and the United States seems to be trying to achieve its interests in South Korea. At the same time, South Korea's assets are also constantly changing, taking the Korea Kospi as an example, the Korea Composite Index has slipped to less than 2,500 points, a far cry from the previous 3,300 points. Although South Korea** has implemented a series of rescue measures, the effect is not ideal. With the exception of a large ** on Monday after the announcement, South Korea's volatility has not been able to return to its previous highs. At the same time, South Korea's export problems are also becoming more and more serious, with exports falling by 11 percent year-on-year in the first three quarters5%。South Korea's chip exports, as the main force, also showed a year-on-year downward trend. Although the export value of memory chips finally showed a year-on-year increase of 1% last month, the previous 16 consecutive months of negative growth made this growth only based on a low base. The export value of system chips continued to maintain a year-on-year decline, with a range of 74%。The large number of South Korean chip exports can be attributed to the fact that it has always stood on the side of the United States and supported various protective measures of the United States. Even so, South Korea does not seem to have any intention of making any changes, perhaps Xi to being harvested.
South Korea has always been one of the Asian Tigers, yet it has always been harvested by the dollar during the Asian financial turmoil and the subprime mortgage crisis. Now, South Korea has once again chosen to side with the United States, with so many companies that some people wonder if they want South Korea to cooperate with the U.S. harvesting plan. This approach begs the question, isn't South Korea learning enough lessons?
The South Korean won exchange rate has been going on for three years. Since the beginning of 2020, the United States has continued to print a large number of dollars, which has led to a continuous decline in the dollar index. However, it is surprising that even during this time, the exchange rate of the South Korean won against the US dollar remained **. This caused the won to fall below 00008, one won can only be exchanged for less than 0008 USD. The severity of this exchange rate fluctuation is food for thought.
The immediate danger of the continued exchange rate of the South Korean won is that the same amount of dollars can buy more South Korean assets, while the United States is trying to harvest South Korean wool. At the same time, South Korea's assets are constantly increasing, especially. Under the blow of overseas short-selling forces, the KOSPI has slipped to less than 2,500 points, compared with the previous 3,300 points, a far cry. Although South Korea** has taken vigorous measures to rescue the market, the effect has not been satisfactory. **At one point, there was a sharp ** on Monday after the announcement of the bailout, but in the weeks that followed, the market remained volatile and failed to recover to its previous highs.
South Korea's export problem is equally serious, with exports falling by 11 percent year-on-year in the first three quarters5%。South Korea is dominated by chip exports, but the export value of chips has continued to decline year-on-year recently. Until recently, South Korea's memory chip exports saw a 1% year-on-year increase. However, due to the previous 16 consecutive months of negative growth, this growth is only based on a low base. The export value of another type of chip, system chips, is still declining year-on-year, with a decline of 74%。
South Korea's chip exports are entirely to blame for the fact that it has always stood on the side of the United States and supported various protective measures of the United States. However, such a choice came at a heavy cost to South Korea. While this may have some benefits in the short term, it has weakened South Korea's competitiveness in the long run, making it hostage to others.
For South Korea, the current situation is indeed very serious. The persistence of the exchange rate and the decline in exports have posed serious challenges to the South Korean economy. However, I believe that there is an urgent need for South Korea to do something to change the situation.
First, South Korea should seek diversified partners and reduce its dependence on the United States. Over-reliance on one country or region makes South Korea more vulnerable to international economic risks. By actively exploring new partners, South Korea can reduce economic risks and protect its own interests.
Second, South Korea should strengthen its own industrial innovation capabilities and core competitiveness. Only through technological innovation and product upgrading can Korean companies remain competitive in the international market and avoid being harvested by other countries. Therefore, South Korea should increase its support for scientific research institutions and enterprises, and encourage enterprises to increase R&D investment and improve their technological level.
Finally, South Korea should actively promote the upgrading and transformation of its economic structure. Only by upgrading the industrial structure and strengthening the development of strategic emerging industries can the Korean economy achieve long-term sustainable development. At the same time, a better business environment and policy support should be provided to encourage enterprises to invest and innovate.
All in all, the continued decline in South Korea's exchange rate and exports has brought serious challenges to the Korean economy. South Korea needs to adjust its strategy in a timely manner, seek diversified partners, strengthen its own industrial innovation capabilities, and promote the upgrading and transformation of its economic structure in order to change the current predicament and achieve sustainable development.