Key Market Views: Won Targeting KRW1,050/US$

We are adding the Korean won to our mock portfolio, and believe that it can rise from KRW1,218/US$ at present to KRW1,050/US$ over the medium term, a gain of 16%. Our view is based on both technical and fundamental factors. Regarding the former, the recent break through resistance in the KRW1,225/US$ area is significant, since this has been a strong barrier for almost a year. On the monthly chart (see below), it is evident that the won is returning to a 10-year trading range whose exit last autumn spelled extended losses for the currency. The KRW1,050/US$ level also stands out

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