Latest South Korean Economy Updates: Stable Exchange Rates, Battery Industry Crisis, Hyundai’s Growth Outlook

USD/KRW Exchange Rate Stabilizes Below 1,430 by Year-End

Despite being in one of the highest exchange rate periods on record, the USD/KRW rate recently closed below 1,430 won, just before the stock market closed. This stability is credited to aggressive verbal interventions and supply-demand measures by foreign exchange authorities, which seem to be working effectively.[1]

Looking ahead to next year, the exchange rate is expected to hover around an average of 1,420 to 1,430 won, with limited reasons for the Bank of Korea to cut interest rates further.[1]

Battery Giants Focus on ESS Projects Amid Electric Vehicle Demand Drop

Battery companies are all-in on the government-led 1 trillion won energy storage system (ESS) project, as industry-wide challenges intensify. The decline in EV demand has led to contract cancellations exceeding 17 trillion won, deepening the industry crisis.[4]

The Ministry of Trade, Industry, and Energy’s head recently summoned top executives from battery firms for an emergency meeting to discuss response strategies. Major players like LG Energy Solution are now viewing ESS projects as their lifeline.[4]

Hyundai Projects 2026 as a Key Growth Year for the Auto Industry

South Korea’s leading securities firm, Korea Investment & Securities, has named Hyundai Motor as its top pick, forecasting a record daily trading volume increase and higher profits from overseas investments, aiming for a maximum annual profit of 1.6 trillion won by 2026.[2]

Hyundai Heavy Industries also raised its target stock price to 730,000 won thanks to increased orders for specialized ships. Share buybacks and other measures are expected to boost dividend yields (DPS) as well.[2]

Key Economic Highlights

• Exchange Rate: Stabilizing toward year-end, expected to stay around 1,420–1,430 won in 2024[1]
• Battery Industry: Fierce competition for 1 trillion won ESS bids, with EV contract cancellations exceeding 17 trillion won[4]
• Hyundai Group: Strong earnings outlook, with Hyundai Heavy Industries’ stock target raised[2]
• ESG Trends: EU’s Carbon Border Adjustment Mechanism (CBAM) expansion prompts importers to prepare for new compliance measures[3][5]

Economic Indicators and Public Interest

Recent reports from Korea Economic Daily highlight structural issues like stricter high-value lease loan regulations for non-homeowners and productivity levels at about 72% of OECD averages (with a 7-year streak of ranking around 30th in weekly hours). These factors are drawing more attention.[6]

Meanwhile, Hyundai’s progress on new ventures like the “Robotaxi” test in U.S. city centers is also gaining interest.[6]