Won Slips Back to 1,380 per Dollar as US Rates Rise

Driven by the US interest rate hike, the won-dollar exchange rate returned to the 1,380-won range on an intraday closing basis for the first time in 15 trading days. The rate climbed 46.1 won over the past six sessions, surging again just a month after a sharp plunge.

Alongside the exchange rate, raw material procurement strategies are also drawing attention. In the rare earth market, Korea is targeting a niche in processing and recycling rather than competing head-on with China on price. As the de-China trend takes hold, defense and eco-friendly markets are seen as key opportunities.

Supply chain responses are also under way in the defense sector. LIG D&A has launched a defense supply chain security win-win partnership bringing together 14 prime contractors, the government, and suppliers. The partnership supports small and medium-sized suppliers in building and maintaining security systems.