This study empirically explores how exchange rate exposure to the US dollar (USD), Chinese yuan (CNY), Euro (EUR), and Japanese yen (JPY) affects the bankruptcy risk of South Korean companies listed on the KOSDAQ. Drawing on theories related to exchange risk management and bankruptcy risk, we employ tobit regression analysis to assess the impact of the absolute value of won/dollar exchange exposure on bankruptcy risk. Additionally, we investigate whether there is a spillover effect from other currencies to South Korean firms. The findings yield several key insights. Firstly, won/dollar exchange rate exposure increases the cost of capital for companies, positively influencing bankruptcy risk. Secondly, yuan/dollar and yen/dollar exchange rate risks showed no significant impact on default rates, while euro/dollar exchange rate risk was confirmed to have a positive effect on Korean companies' default risk. Thirdly, we identify a time lag effect in the absolute values of the won/dollar and Euro/dollar exchange exposure coefficients on bankruptcy risk. Considering these results, South Korean companies should be mindful that the impact of won/dollar exchange rate fluctuations on current bankruptcy risk may not be immediate but may manifest with a delay over time. Additionally, given the positive influence of Euro/dollar exchange rate fluctuations on future bankruptcy risk, companies need to manage exposure to various currency fluctuations beyond just Euro/dollar. Lastly, despite the insignificance of won/dollar, yen/dollar, and yuan/dollar exchange rate exposure on South Korean companies' bankruptcy rates post-COVID-19, Euro/dollar exchange rate exposure continues to have a significant positive impact on bankruptcy risk.