Stronger won hits some 60% of Korean exporters

Nearly six in 10 Korean exporting companies are feeling the pinch of the local currency's recent surge against the U.S. dollar as it eats into their overseas earnings, a poll showed Thursday.

According to the survey of 500 South Korean exporters conducted by the Korean Chamber of Commerce and Industry (KCCI), 57.6 percent of the companies polled said that their earnings were hurt by the won's recent ascent against the greenback.

Only 2.6 percent of the respondents said they have not experienced losses in their profits from the stronger won, while 39.8 percent said that the stronger won had little impact on their earnings.

The local currency finished at 1,085.4 won Wednesday, up 5.3 won from Tuesday's close. So far this year, the won has gained more than 6 percent against the dollar, as Korea's relatively strong fundamentals and fiscal soundness as well as quantitative easing steps by major central banks lent support to the won.

A stronger won usually makes exports more expensive in overseas markets, lowering the value of exporters' dollar earnings.

The respondents answered that they will undergo losses in their profits if the won rises above 1,086.2 won to the dollar, the KCCI said.

Exporters of home appliances, petrochemicals, semiconductors, displays and foods are placed in a situation where more exports increase their losses as the won rose above the 1,090.4 won level, the KCCI said.

Automakers, steel makers and shipbuilders are also in danger of facing losses from their exports.

"Worsening profitability of key exporters, including semiconductor makers, automakers and shipbuilders, will threaten the South Korean economy whose domestic consumption stays in slump," the KCCI said.

Home appliances, semiconductors, automobiles and ships account for 40 percent of South Korea's overall exports. (Yonhap)