Korean Job Discussion Forums

[4 months left]

I heard on CNBC Asia this morning the Korean gov't may take steps to devalue the Korean Won. If you were thinking about transferring money, it might be a good time to do it.

Although devaluing a currency is not always successful, just reporting what I heard.

[billybrobby]

that's been their policy for years, hasn't it?

[EMKAYES]

So I would get more $ for my won or less?

Sorry my brain isnt working today.

[4 months left]

Yes but with the recent strenght against the Yen, the report said Korea had been unsuccessfully trying to "talk down" the Won and they would take steps to try to devalue.

Yes it is their policy, they just said they are thinking about doing something soon.

[4 months left]

[billybrobby]

[denistron]

But I want more. How about doing it that way.

[huffdaddy]

Won closed at 935.65 /USD. Doesn't sound like the markets really reacted to the news.

[kingplaya4]

While this wouldn't mean much to short termers, this may be a necessary evil and good for those of us who mean to stay here awhile. Korea still exports a lot when compared with Western countries, and if the exchange rate keeps the won low then Korean products will be too expensive overseas and probably cause a recession here. That would effect just about everyone except for those real high on the food chain.

[Bramble]

Does anyone have any more information about this? How big a difference would it make?

[Wangja]

I would be surprised were the KRW devalued.

Whilst it is true that the KRW has risen against the USD, that is probably a result of the USD's general weakness rather than the KRW's strength.

On the trade issue, Korea's USD denominated trade is largely with USA at 14.5% of exports and USA and Saudi Arabia (11.8% and 6.2% respectively) for imports. Simply put, their USD denominated imports are greater than their exports. Thus, they are not necessarily damaged by a weak dollar.

For some perspective, note that export figure: most people imagine that most of Korea's exports go to USA. The reality is that USA takes barely one seventh of Korea's exports.

[bobbyhanlon]

[4 months left]

The Chinese currency is pegged to the U.S. dollar and is not free floating. The Korean Central Bank thinks it has the power to devalue the won. The EU has been complaining about the weakness of the Yen and it was one of the topics of the G7 Finance Ministers meeting on the weekend.

I think at the moment the biggest concern is the Yen as is the EU but the US is more conerned about China.

Yes a strong currency means a healthy economy but because so much of Korea's economy depends on exports they want it as weak as possible. Again it's a matter of Korea wants to take, take and take and not give...case in point beef imports and auto exports while highly taxing imports.

[Horangi Munshin]