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South Korea’s Growing Investment Overseas Adding to Won’s Pain

  • Firms are plowing money into operations abroad to fuel growth
  • Depreciating won exacerbates Bank of Korea’s inflation fight

South Korea’s growing direct overseas investment is among the factors piling pressure on the won amid its slide to its lowest levels since the aftermath of the global financial crisis.

While the Federal Reserve’s rapid policy tightening is the most obvious reason strengthening the dollar against a whole host of currencies across the globe, Korea’s foreign direct investment is a lesser-known long-term factor weighing on the won.