Samsung Electronics is about to pay out $1.8 billion in dividends, and the upward momentum of the South Korean won may be hindered.

The South Korean won, which has been under pressure for most of this year, has shown signs of recovery in recent days, rising for the fifth consecutive day on Tuesday to 1 US dollar to 1391.20 won. However, the won is currently facing another obstacle the dividend payout from South Korea's largest company, Samsung Electronics. Samsung Electronics plans to distribute 25 trillion won (approximately 18 billion USD) in dividends on Wednesday. Data from the Korea Exchange shows that over half of the dividends will be paid to foreign investors, who hold about 52% of the company's common shares. As Samsung Electronics distributes dividends, the won is at a critical juncture, facing challenges such as rising US bond yields, continued capital outflows from the stock market, and threats of Trump's tariffs. Last week, the exchange rate of the won against the US dollar fell to its lowest level in two years at 1 US dollar to 1410.70 won, although it has recovered some of the losses since then. Moon Dawoon, an economist at a South Korean investment securities company, said, "The dividend issue may affect the supply-demand environment and put downward pressure on the won on the day of the dividend payout." Woori Bank economist Min Gyeong-won also stated that usually, two days before the dividend payout, there is an observation of USD buying due to dividend inflows, but so far, he has not seen many buy orders from foreign clients.