President Donald Trump’s trade pact with South Korea could lead to an outflow of funds, impacting the won but boosting the Kospi. South Korea agreed to inject $350 billion into the U.S. for lower tariffs. The deal will require careful management to mitigate currency effects. The won initially gained but is now down against the dollar.

South Korea’s Kospi hit a new high with shipbuilding and auto shares surging. Tariffs on chips will be competitive, benefiting manufacturers. Hyundai Motor and Samsung Electronics saw significant stock gains. Analysts predict a positive outlook for the Kospi, expecting a rise above 5,000 points within a year.

The investment deal will lead to $20 billion in annual outflows, weakening the won. Local investors are increasingly buying overseas assets, further impacting the currency. Analysts foresee continued pressure on the won despite safeguards. The Kospi closed at a record high, signaling optimism in the market.

Read more at Yahoo Finance: Analysis-Trump’s Korea trade deal revives concerns about currency flight