Seoul: The South Korean currency fell sharply against the US dollar during intra-day trading on Wednesday after Donald Trump won the US presidential election.
The South Korean won was trading at 1,400.5 won to the dollar as of 8:20 p.m., marking the first time to surpass the 1,400 won threshold since April 16. The won opened at 1,374 won at 9 a.m., up 4.6 won from the previous session.
But the won-dollar rate reversed course in the morning, with the U.S. dollar strengthening on news that Trump held an advantage over Democratic rival Kamala Harris in the Electoral College vote, reports Yonhap news agency.
South Korean trade authorities began discussing strategies in response to potential US trade policies under Donald Trump’s second term as president.
The Ministry of Trade, Industry and Energy said it convened an emergency meeting to review potential policy responses centred around Trump’s campaign pledges.
The ministry has been closely monitoring and analysing the possible impacts of the U.S. election outcome on major industries, including semiconductors, automobiles, batteries and steel.
On Thursday, another meeting, led by Industry Minister Ahn Duk-geun, will be held to gather feedback and finalize specific response strategies.
A second Trump presidency could have significant implications for South Korea’s trade policy, as Trump has previously suggested imposing an up to 20 percent tariff on all goods imported into the U.S.
Meanwhile, with former US President Donald Trump’s successful re-election to the White House, South Korean industries with major investments in America may be expected to realign their US business strategies amid an anticipated shift in Washington’s economic and trade policies.
Korea Ratings, a corporate ratings agency in Seoul, predicted in a recent report that while fully repealing the CHIPS Act could be difficult, Trump may offer stronger support for American companies, thus reducing subsidies for companies of allies and close partners.
–IANS
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