Strong semiconductor exports and a record current-account surplus are bolstering the Korean won, with USD/KRW recently trading near 1,329 after averaging 1,343 in early October. The Bank of Korea’s back-to-back hikes lifted its policy rate to 3 percent, narrowing but not eliminating the roughly 100-basis-point gap with the Fed’s 3.75–4.00 percent target range. IMF and OECD upgrades to Korea’s 2026 growth outlook (around 3.3 percent) reflect chip-led momentum that has more than offset Middle East-related oil-price pressures. Broker forecasts increasingly cite potential moves toward 1,300 or even 1,250 by late 2026 or into 2027 if export dollar inflows persist, while near-term volatility remains tied to FOMC decisions, BOK policy pauses or further tightening, and geopolitical risks that could support the dollar.