{"id":2206953,"date":"2024-10-28T15:40:04","date_gmt":"2024-10-28T06:40:04","guid":{"rendered":"https:\/\/koreapro.org\/?p=2206953"},"modified":"2024-10-29T16:59:19","modified_gmt":"2024-10-29T07:59:19","slug":"how-south-korean-investors-can-trump-proof-their-portfolios-this-election","status":"publish","type":"post","link":"https:\/\/koreapro.org\/2024\/10\/how-south-korean-investors-can-trump-proof-their-portfolios-this-election\/","title":{"rendered":"How South Korean investors can Trump-proof their portfolios this election"},"content":{"rendered":"
With the U.S. presidential race <\/span>tightening<\/span><\/a>, South Korean investors may face currency volatility, trade barriers and sectoral disruptions if Donal Trump returns to office, threatening key asset classes and industries that have thrived in recent years.<\/span><\/p>\n By focusing on diversified assets, stable markets and resilient sectors, investors can prepare to protect their portfolios from anticipated changes should Trump be re-elected for a second term.<\/span><\/p>\n CURRENCY AND TRADE RISKS<\/b><\/p>\n The Korean won has shown increased volatility against the U.S. dollar, losing nearly 80 won in the past month alone and trading close to 1,390 won to the dollar. Analysts <\/span>project<\/span><\/a> it could slide further to 1,450 if a Trump presidency drives up dollar demand.<\/span><\/p>\n A strong dollar would inflate import costs for South Korean exporters, particularly in sectors like semiconductors and electronics that depend on dollar-priced imported components. This impact on costs could erode profit margins, even as a weaker won boosts South Korea\u2019s overall export competitiveness.<\/span><\/p>\n Historically, Trump\u2019s trade policies <\/span>propelled the dollar upward<\/span><\/a> while <\/span>weighing<\/span><\/a> on trade-dependent currencies like the won. For investors focused on export-heavy South Korean firms, hedging against currency risk through options like currency-hedged <\/span>exchange-traded funds<\/span><\/a> (ETFs) or exposure to dollar-denominated assets could mitigate the impact of further dollar appreciation.<\/span><\/p>\n