Monday, December 2nd, 2013
SEOUL, KOREA - Major Korean companies like Samsung Electronics, Hyundai Motor, and Kia Motors have set their benchmark won-dollar exchange rate for all their business plans for the next year at 1,050 won per dollar.
In the case of Samsung, this is 30 won lower than this year. For companies relying more on exports than imports, appreciation of won value erodes their profitability. Other Samsung Group companies have also set their own plans for 2014 based on the same exchange rate.
A chaebol group official said, "Most groups have designed their business plans with an assumption that the won will go stronger against the dollar." A survey by the Korean Economic Daily on 44 CEOs of top-30 business groups also yielded similar results.
The average won-dollar exchange rate forecast by top-30 conglomerates for the next year is 1,069.90 won. The average won-yen exchange rate is 1,074.40 won per 100 yen. These are 19.20 won and 136.70 won lower than this year's average, respectively.