There is a foreign exchange loss in this scenario.
Foreign exchange (Forex or FX) is the trading of one currency for another. It is the largest and most liquid financial market in the world. The Forex market is open 24 hours a day, five days a week, and is made up of banks, different commercial companies, central banks, hedge funds, investment management firms, and individual investors. In the Forex market, currencies are traded in pairs, such as the US Dollar and the Euro, or the British Pound and the Japanese Yen. When a trader buys or sells a currency pair, they are effectively buying one currency and selling the other. Forex trading is conducted over the counter (OTC) and is not centralized on an exchange, as with the stock and futures markets. Forex traders are seeking to make a profit by speculating on the value of one currency compared to another.
This is because when the Korean subsidiary sells inventory to the Japanese company, the sale is denominated in US dollars. However, between the date of sale and the date the receivable is collected, the Korean won strengthens 10% against the US dollar. This means that the US dollars the Korean subsidiary will receive are worth 10% less than they were when the sale was made. Therefore, the US company will incur a foreign exchange loss because they will receive less money than they expected.
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