[Edaily Reporter KIM YOON JI ] Analysts have suggested that the large-scale shareholder return plans announced by SamsungElectronics(005930)and SK hynix(000660)represent a new variable that could influence the direction of the won. If these companies utilize the won market to secure the funds needed for dividends and share buybacks, the recent strengthening of the won could continue.
On the 21st, the won rose to 1,380.35 per dollar, showing an intraday gain of up to 1%. Bloomberg reported that this was driven by expectations that SamsungElectronics would soon announce a shareholder return policy worth over 100 trillion won—the largest in the history of the South Korean stock market. Earlier, SK hynix also announced a 40 trillion won share buyback and cancellation program.
The won has been strengthening sharply since early July. Over the past 40 days, the won has risen at its fastest pace since late 2022, and this week, it fell below the 1,400 won per dollar mark for the first time in about 10 months.
Investors are closely watching how much demand for the won the two companies’ shareholder return plans will generate, as well as how much of the funds received by foreign shareholders will be remitted overseas.

Choi Kyu-ho, an analyst at HANWHA INVESTMENT & SECURITIES, predicted, “Companies must pay shareholder returns in won. They can use won they already hold, or they can sell dollars elsewhere to buy won. Given the sheer scale of these payments, there is a possibility they will sell a bit more dollars in the process of raising funds.”
While expectations for shareholder return plans have driven the won’s strength, it remains uncertain whether this will be a sustained factor for the won’s appreciation. This is because it is unclear whether SamsungElectronics and SK hynix will fund their shareholder returns using existing won cash reserves or by converting their dollar holdings into won.
Citigroup estimated that if foreign equity investors remit the funds they receive back overseas, approximately half of the total shareholder return program could be converted back into U.S. dollars. According to the Korea Exchange, as of August 20, foreign ownership of SK hynix stood at 50.1%, while that of SamsungElectronics was 46.9%.
Nevertheless, Citigroup assessed that the shareholder return plans are generally positive for the won. Kim Jin-wook, Citigroup’s chief economist for Korea, noted in a report that companies may need to convert more of their export-generated dollars into won than before in order to secure funds for shareholder returns. He added that the won’s strength is being supported by a robust inflow of dollars driven by strong exports, as well as active dollar sales and won conversions by the private sector, and currency hedging.