“The exchange rate turns lower and foreign investors arrive”: the case for KOSPI opportunities now | Seong Sang-hyeon’s MacroBeyond, guest KK, part 3

An independent exercise, not a statement by the video creator or verification of every claim in the video.

The same Korean stock return changes when translated into dollars

Assume a dollar-based investor with no currency hedge, taxes, dividends or fees. If the investor buys Korean shares when 1 dollar equals 1400 won, the won share price rises 10%, and the exchange rate becomes 1300 won per 1 dollar, the dollar return is 1.10 × 1400 ÷ 1300 − 1, approximately 18.46%. If the rate instead becomes 1500 won per dollar, the same calculation gives approximately 2.67%. Compound the local equity return and currency translation effect rather than simply adding them. This illustrates why exchange rates matter to foreign investors but does not forecast the currency or new capital inflows.

Check for yourself

1. Has won appreciation been correctly associated with a fall in won per dollar?
2. Does the investor hedge currency exposure, and is the dollar the reference currency?
3. Is there evidence distinguishing greater interest from actual net buying and long-term allocation changes?

Limits of application

This translation example uses hypothetical exchange rates and returns. It does not directly calculate Korean residents’ perceived wealth or exporters’ profits; hedging, costs, dividends, taxes and execution timing affect actual investments.