Headline. Chip momentum holds as the won slides past ₩1,518/USD, keeping Korea’s export engine strong but pressuring margins.
Top Story
Korea’s semiconductor exports are running hot into mid-2026 — an estimated $110.4B in the first four months, driven by AI demand. SK Hynix’s June 7 memory partnership with Nvidia for AI-factory buildout underscores how central Korean memory has become to the U.S. AI stack. The risk is a weaker won, now near ₩1,518/USD, down ~11% over twelve months, which inflates import costs even as it flatters export revenue.
Trade & Tariff
The U.S.–Korea framework caps tariffs at 15%, with autos and parts cut from 25% to 15%, and Seoul expects retroactive relief from Nov 1. Semiconductors get terms no less favorable than peers. The deal includes $150B for U.S. shipbuilding and $200B for other U.S. industries, capped at $20B/year.
Sector Watch
Semiconductors — production up 13.2% YoY in 2025 with strong momentum this year; a brief bout of profit-taking in Samsung and SK Hynix on June 10 looks like noise, not a trend break. Automotive — the 15% tariff ceiling supports Hyundai and Kia U.S. pricing. Biopharma was quiet.
Korean Corporate Tracker
Samsung — a ₩450T five-year domestic plan (~$310B), plus a long-range Texas buildout. SK — about ₩128T domestically through 2028, AI-focused. Hyundai — ₩125T from 2026–2030 for research, AI, robotics, and autonomy.
Hanwha Watch
Hanwha Philly Shipyard is ramping to ~3 vessels this year, up from roughly 1.5/year, backed by more than $200M in upgrades since December 2024 and a $5B investment commitment. Hanwha is reportedly scouting a second U.S. shipbuilder.
BCW Take
The won’s slide is the quiet story this week. It cushions Korean exporters in the short term but raises the urgency of U.S.-side localization — exactly the bet Samsung, SK, and Hanwha are already placing.
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