Won Breaks 1,500 per Dollar for First Time in 17 Years

Customized Economic Briefing by AI PRISM*

*Editor's note: 'AI PRISM' (Personalized Report & Insight Summarizing Media) is an AI-based customized news recommendation and summarization service developed with support from the Korea Press Foundation. It selects and provides six tailored news items for each reader type.

Won-Dollar Exchange Rate Enters 1,500 Won Era: The won-dollar exchange rate broke through the 1,500 won level during regular trading for the first time in 17 years, hitting its highest point since the 2009 global financial crisis. With the strong dollar, surging oil prices, and the Iran situation creating overlapping major geopolitical risks, calls are growing for high-intensity policy responses including joint Korea-Japan action.

LG Electronics Bets 4 Trillion Won on Future Growth Engines: LG Electronics is investing 4.0453 trillion won this year in new businesses including AI infrastructure, robotics, and automotive components—a 28.2% increase from last year. Despite a 27.5% plunge in operating profit, the company is pouring 1.5683 trillion won into AI and robotics alone, signaling its intent to capture future markets.

Battery Big Three Accelerate ESS Pivot: Samsung SDI secured approximately 1.5 trillion won in ESS battery orders from the United States, creating a breakthrough to offset sluggish electric vehicle sales. All three major battery makers are converting 20-30% of production capacity to ESS, while materials suppliers are also landing large-scale contracts.

1. "1,500 Won Could Become the New Normal"… Markets Await Government's Bold Move

The won-dollar exchange rate hit 1,501.0 won during regular trading on the 16th, breaking through 1,500 won for the first time in 17 years since the 2009 financial crisis. With the strong dollar, surging oil prices, and the Iran situation creating overlapping major external variables, the consensus is that market forces alone cannot reverse the trend. Deputy Prime Minister Koo Yun-cheol hinted at possible joint action following the Korea-Japan finance ministers' meeting. Markets are voicing concerns about the rate becoming entrenched in the 1,500 won range, with some mentioning mid-1,600 won levels. However, analysts note that export companies still have dollar-selling positions remaining, leaving room for downward movement.

2. LG Electronics to Pour 4 Trillion Won into AI Infrastructure, Robotics, and Automotive Components This Year

LG Electronics is investing 4.0453 trillion won in new business facilities this year, up 28.2% from 3.1565 trillion won last year. The company allocated 1.5683 trillion won to AI and robotics (up 52% year-on-year), 394.6 billion won to HVAC (up 141%), and 861.9 billion won to automotive components (up 14%), while reducing home appliance investment by 3.6%. R&D investment also expanded 11% year-on-year to 5.2878 trillion won, raising its ratio to sales to 5.9%. Increasing investment by nearly 1 trillion won despite a 27.5% plunge in operating profit is seen as an aggressive bet to secure future ecosystem dominance.

3. 'Vera Rubin' Unveiled… Samsung and SK Also Take the Stage

Nvidia's GTC 2026 opens for four days starting the 16th in San Jose, where detailed specifications and production schedules for next-generation AI accelerator 'Vera Rubin' will be revealed. Vera Rubin will be equipped with HBM4, with Samsung Electronics and SK Hynix as key suppliers. Samsung Electronics is disrupting the market with the world's first HBM4 mass production and shipments. SK Group Chairman Chey Tae-won met directly with CEO Jensen Huang to discuss expanding HBM supply, intensifying competition between the two companies. Micron's earnings release on the 18th during the event is expected to serve as a barometer for the overall memory market.

4. Samsung SDI Lands $1.5 Trillion Order in US… ESS to Offset EV Revenue Shortfall

Samsung SDI has signed an approximately 1.5 trillion won ESS battery contract with a major US energy company. Production will take place at the Stellantis joint venture plant, with lines originally built for EVs being converted for ESS, with phased deliveries through 2029. LG Energy Solution has secured large-scale orders including an estimated 5.9442 trillion won contract believed to be with Tesla. Materials supplier POSCO Future M also signed a 1.0149 trillion won long-term anode materials supply contract. With all three major battery makers converting 20-30% of production capacity to ESS, the benefits are spreading to materials suppliers.

5. "10% Rise in Oil Prices Would Increase Manufacturing Costs by 0.71%"

The Korea Institute for Industrial Economics and Trade analyzed that a 10% rise in international oil prices would increase domestic manufacturing total production costs by an average of 0.71%. With the US-Iran conflict driving oil prices up more than 40% from $72 to $103 per barrel, cost pressures vary by sector—petroleum products (6.3%) and chemical products (1.59%). Korea imports more than 70% of its crude oil from the Middle East, making it vulnerable to energy supply chain instability. With stagflation concerns being raised, experts are calling for urgent sector-specific support measures.

6. Truston Withdraws Shareholder Proposal Against KCC… "Welcomes Asset Monetization Decision"

KCC decided to monetize assets and cancel treasury shares, prompting Truston Asset Management, which holds a 1.88% stake, to withdraw its shareholder proposal. KCC's holdings of listed company shares are valued at 5.265 trillion won, exceeding its market capitalization of 4.541 trillion won—a key factor cited for its stock undervaluation. KCC previously announced plans to cancel 1,174,300 treasury shares in installments by September next year. Full-scale asset monetization and treasury share cancellations could create momentum for corporate value appreciation.