Core Points - The trade pact between the U.S. and South Korea is expected to lead to significant capital outflows from South Korea, impacting the won negatively while benefiting the Kospi index [1][2] - South Korea has committed to invest $350 billion in the U.S., with $200 billion in cash to be paid in installments capped at $20 billion per year, and $150 billion allocated for shipbuilding cooperation [2][3] - The investments will be funded through operating income from South Korea's foreign assets, which has alleviated some uncertainties regarding financing [3] Currency Impact - The Korean won is anticipated to face depreciation due to steady long-term outflows, which may limit short-term gains [4] - The won has been one of the worst-performing currencies in Asia, driven down by local investors' increasing interest in U.S. stocks [5] - Predictions suggest the won could weaken further to 1,450 per dollar over the next six months to a year [5] Investment Behavior - The private sector's reduced conversion of dollar export proceeds to won may pose depreciation risks for the currency in the coming years [6] - The National Pension Service's growing investments in overseas equities and bonds necessitate selling won for dollars, contributing to the currency's weakening [6]