"Each 10-Won Drop in Exchange Rate Boosts Profit by 2.5 Billion Won"...Stocks Benefiting from the Strong Won at 1,340 Won Level

Lowest Exchange Rate in Two Years... Increased Interest in Won-Strong Beneficiaries

Airline, Food, and Banking Sectors Expected to See Improved Profitability from a Stronger Won

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As the won–US dollar exchange rate has recently plummeted, interest in “won strength beneficiaries” has grown. The securities industry cites airlines, food and beverage, and banks as the leading sectors expected to benefit from a declining exchange rate.

Interest Grows in Beneficiaries of the Strong Won Amid Lowest Exchange Rate in Two Years

According to the Seoul foreign exchange market on September 14, the won–US dollar exchange rate, which stood at 1,555 won on July 2, has recently fallen sharply to the 1,340 won range, a decline of about 13%. This is the lowest level since early October 2024. Analysts attribute the ongoing downward trend in the exchange rate to major semiconductor companies like Samsung Electronics and SK hynix converting the large amounts of dollars they have earned into won.

With the exchange rate dropping, the securities industry is busy identifying stocks that benefit from a stronger won. Airlines are a representative beneficiary sector. This is because airlines pay for key expenses—such as fuel costs, aircraft lease fees, and interest on foreign currency debt—in US dollars, so a falling exchange rate immediately reduces costs and eases the burden of foreign currency liabilities. Furthermore, when the won strengthens, demand for overseas travel by domestic travelers (outbound) increases significantly, creating a virtuous cycle.

Ryu Je-hyun, a researcher at Mirae Asset Securities, explained, "When the won strengthens, airlines' cost burden is reduced and passenger demand improves. The drop in the won–US dollar exchange rate is a positive development for the airline sector." Ryu picked Korean Air as his top pick. He emphasized, "Although there are concerns about high oil prices, Korean Air enjoys several positive factors, such as the impact of a stronger won, the momentum of the peak cargo season, the benefits from the merger with Asiana Airlines, and the increasing significance of its defense business portfolio."

Profitability Expected to Improve for Airlines, Food & Beverage, and Banks Due to Stronger Won

The food and beverage sector is also considered a strong beneficiary of a robust won. Since the food industry is highly dependent on overseas imports for key raw materials such as wheat, corn, soybeans, and refined sugar, an appreciation of the won generates significant cost-saving effects on imports. Among food and beverage companies, the impact of a falling exchange rate is expected to be more pronounced for firms with relatively lower overseas sales and a stronger domestic business base.

According to Kyobo Securities, as of 2025, the proportion of overseas sales for food and beverage companies is as follows: Samyang Foods (80%), Orion (65%), CJ (51%), Nongshim (44%), Lotte Wellfood (23%), Binggrae (20%), and HiteJinro (10%).

Kwon Woo-jeong, a researcher at Kyobo Securities, selected Lotte Wellfood as the top pick among them. Kwon said, "For each 10-won drop in the won–US dollar exchange rate, Lotte Wellfood’s annual operating profit is estimated to improve by approximately 2.5 billion won. Recently, the company has seen high growth of over 20% in its Indian subsidiary as well as improved fundamentals in its domestic operations, making its valuation more attractive."

In the financial sector, bank stocks are expected to benefit significantly from a stronger won. When the exchange rate falls, banks see a sharp increase in foreign currency translation gains when evaluating their non-won assets and liabilities. In addition, as risk-weighted assets (RWA) decline, banks' core capital adequacy indicator—the Common Equity Tier 1 ratio (CET1)—improves.

Shinhan Investment Corp. highlighted Hana Financial Group. Shinhan Investment’s researcher Eun Kyung-wan said, "Hana Financial Group is estimated to have generated around 150 billion won in foreign currency translation gains in the third quarter due to the fall in the won–US dollar exchange rate. With this strengthened capital base, the company is expected to implement aggressive shareholder return policies in the fourth quarter, such as additional share buybacks and cancellations amounting to approximately 300 billion won."

This content was produced with the assistance of AI translation services.