Offshore Funds Boost Won Hedges on Trade Angst, Hana Bank Says

Foreign investors are piling into South Korean won hedges amid concern the currency market hasn’t fully priced in the downside risks from a $350 billion investment pledge tied to a trade deal with the US.

Overseas funds have been pouring into Korean assets, but stock investors are showing an unusually strong preference for currency hedging, according to Taehun Namkoong, senior manager in the Financial Markets Division at Hana Bank, the nation’s largest won trader.