Why Kospi and Korean won have parted ways

What happened: The Korean won has decoupled from the Kospi, rebounding sharply while foreign investors sold Korean shares and the index fell. Key numbers: The won hit 1,549.4 per dollar on June 30, its weakest since the global financial crisis, then strengthened to 1,324.2 on Thursday, a two-year high. Why it matters: Record chip-driven export surpluses are flooding the forex market with dollars, offsetting foreign outflows. Analysts say the won's rapid appreciation and volatility are fueling foreign selling of Korean equities.

The Korean won has decoupled from the Kospi, rebounding sharply while foreign investors sold Korean shares and the index fell.

Record chip-driven export surpluses are flooding the forex market with dollars, offsetting foreign outflows. Analysts say the won's rapid appreciation and volatility are fueling foreign selling of Korean equities.