Citi Strategist Sees Opportunity to Accumulate Korean Won Near 1,400 Level

Citi Recommends Buying the Won at Current Levels

A senior trader at Citigroup Inc. responsible for Korea-based currency operations has urged clients to take a long position in the South Korean won near the 1,400-won-per-U.S.-dollar level. The recommendation reflects the bank's view that the won's recent depreciation against the greenback is unlikely to persist.

According to the Citi trader, the currency has been under pressure in the past stretch of trading, but the fundamental backdrop is shifting in a way that should reverse that trend. The key catalyst, in the trader's assessment, is the strength of South Korea's chip sector, which continues to underpin broader economic growth.

Chip Sector as a Currency Tailwind

The South Korean semiconductor industry has emerged as a central pillar of the country's export economy, and the Citi strategist sees that momentum translating directly into currency support. As chip demand sustains corporate earnings and trade surpluses, the inflow of foreign capital and the overall current-account position should strengthen the won's position relative to the dollar.

The trader's logic is straightforward: a sector that is growing and generating strong export revenues reduces the supply pressure on the local currency and attracts foreign buyers into Korean assets, both of which push the won higher. In this framing, the chip sector is not merely a cyclical story but a structural support for the currency.

Year-End Outlook and Positioning Rationale

The Citi Korea trading head expects the won to stage a meaningful recovery against the U.S. dollar by the end of the calendar year. The 1,400-won entry point is presented as a risk-reward opportunity: buying at that level captures the current dislocation while positioning for the fundamental re-rating that the chip-driven growth cycle is expected to deliver.

The recommendation is framed as a near-term tactical call rather than a long structural thesis, with the trader emphasizing that the won's present weakness is a short-lived episode rather than the start of a prolonged depreciation cycle. For market participants monitoring the cross, the Citi view suggests that the current range offers a favorable entry before the currency begins its expected climb.

The outlook underscores how a single high-technology sector can serve as a dominant driver of currency performance, linking South Korea's position in the global semiconductor supply chain directly to the won's trajectory against the dollar over the coming months.