On October 15, the International Monetary Fund (IMF) reported that the diverging trends between the Korean won and the Japanese yen might be more influenced by the AI boom rather than the interest rate differentials between the two nations. The IMF highlighted that the bond yield spread between Japan and South Korea has not expanded significantly, and the market has already factored in expected policy interest rate hikes in both countries. Despite this, from July 1 to September 3, the Korean won saw an 11% appreciation against the Japanese yen. According to the IMF, this suggests that the AI boom's effect on the current and capital accounts is a more plausible explanation for the divergence in the currencies' trends. Driven by the soaring demand for AI, South Korea's semiconductor industry has witnessed a surge in export earnings, with companies converting these revenues into Korean won, thereby bolstering the won's exchange rate. In contrast, Japanese companies are more inclined to reinvest their overseas investment income abroad rather than bring it back to Japan.