Korean investors flock to dollar-investments as won climbs

[THE INVESTOR] South Korean money is flowing into dollar-based investment vehicles, as won continues to gain against the greenback.

One Aug. 10, the won-dollar rate dropped below 1,100, and experts say that foreign entities consider the won to be undervalued.

As the won strengthens against the dollar, local investment companies have seen the influx of funds into dollar repurchase agreements soar in July. 

The amount put into dollar RP at Daishin Securities went from US$82.96 million at the end of June to US$158.78 million at the end of July. The figure for all dollar-investment vehicles has risen from about US$150 million at the beginning of the year to US$330 million.

Mirae Asset Securities have also seen similarly rapid rise, with the amount increasing from US$43 million at the beginning of the year to US$105.96 million by end-July.

By Choi He-suk (cheesuk@heraldcorp.com)