The Korean won has strengthened to around 1,360 per dollar, down sharply from an average of 1,483 won in the first half and 1,426 won in the third quarter. Market participants attribute the move largely to dollar supply from semiconductor companies including Samsung Electronics and SK Hynix, whose overseas sales generate foreign-currency inflows and whose spending on capital investment, bonuses and shareholder returns creates demand for won. Meritz Securities estimates the two companies will need about 458 trillion won ($331.9 billion) in won next year, roughly twice this year's amount and equivalent to about 60% of South Korea's annual current-account surplus. The currency remains vulnerable, however, as high U.S. interest rates, a widening Korea-U.S. rate gap and exporters' forward dollar selling could increase volatility. An analyst at IBK Investment & Securities said dollar strength could persist if U.S. market interest rates remain around 5%, with external uncertainty potentially exerting greater influence over time.