USD/KRW closed at 1,346.95 on September 14, 2026, after trading between 1,342.91 and 1,349.96. Manufacturers should define what they will do at 1,320, 1,350 and 1,380 rather than trying to guess the next print.
- September 14 USD/KRW close: 1,346.95
- Bank of Korea base rate: 3.00% since August 27, 2026
- A move from 1,340 to 1,380 adds KRW 4 million to a USD 100,000 payment
Geopolitical tension, higher oil prices and expectations around the Federal Reserve supported the dollar. When oil and the dollar rise together, import-dependent manufacturers face a double cost shock.
FX reaches cost before revenue
Companies that buy materials in dollars and sell in won often cannot pass a currency increase to customers immediately. If quotations remain fixed while settlement rates rise, gross margin falls first. Companies with both dollar revenue and dollar purchases should align timing and amounts to create a natural hedge.
| USD/KRW band | Decision | Immediate action |
|---|---|---|
| Below 1,320 | Lower payment-cost zone | Secure confirmed 1–2 month purchases in stages; avoid cutting quotation benchmarks too quickly. |
| 1,320–1,360 | Operating zone | Manage weekly exposure and align export proceeds with import settlements. |
| 1,360–1,380 | Margin warning zone | Add FX adjustment clauses and recalculate fixed-price item margins. |
| Above 1,380 | Contingency zone | Split large payments and combine hedging review with customer repricing discussions. |
These are management bands, not exchange-rate forecasts. Each company should reset them using its break-even FX rate, net dollar exposure and ability to adjust customer pricing.
Remove hidden FX risk from quotations
Write “This quotation is based on USD/KRW 1,350.” A visible benchmark creates a basis for later adjustment.
When FX and material prices are volatile, a 15–30 day validity period is safer than 60–90 days. Longer programs should use a monthly average or a defined repricing band.
Track Au, Ni and Cu reference prices, FX and processing fees separately. This makes cost changes easier to explain and negotiate.
Sensitivity of a USD 100,000 payment
| FX rate | KRW payment | vs. 1,340 |
|---|---|---|
| 1,320 | KRW 132 million | -KRW 2 million |
| 1,340 | KRW 134 million | Base |
| 1,360 | KRW 136 million | +KRW 2 million |
| 1,380 | KRW 138 million | +KRW 4 million |
This week's checklist
- Map dollar purchases and receipts by week for the next eight weeks.
- Calculate the base and break-even FX rate for each product.
- Stress-test margins at 1,360 and 1,380.
- Add base rate, validity and repricing terms to new quotations.
- Split conversions by payment date and amount.
- Apply forward hedging first to confirmed exposures, not forecasts.
Conclusion: operating rules before forecasts
Even if the won strengthens over time, swings of 20–40 won can recur along the way. Purchasing, sales and management need one action table covering payment timing, quotation rules and acceptable margin erosion.
CHEMNEX connects FX and material-cost intelligence with practical quotation, material, plating and supply-chain solutions.
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