Korean Job Discussion Forums

[cdninkorea]

Like many of you, I have a decent amount of savings here in Korea. Lately I'm thinking of converting it to another currency before the Korean won gets worse. Were I not planning to use the money for years I could wait it out, but as I will need to spend most of it in the next six months, the movement of the local currency in the near future is a concern.

Should people with short term savings in Korea convert to another currency? If so, which one?

(I realize no one can predict for certain, especially as there are likely no financial experts surfing this board).

[Otherside]

Are you planning on spending most of it in Korea or back home?
If it's the former...moving it out for a short period (and then pulling it back in) comes with some risk..the spread in exchange rates will undo most of the gains made if the won drops (if it crashes..well then its a no brainer...if its a minor drop you may actually lose) and obviously if the won strengthens you are losing big time.

If you are planning on using it back home...
The safest thing to do is to divide your savings up into 5-6 or equal portions and send a portion home each month. This way you can sit on the fence while limiting your exposure (and locking in a portion of your savings each month). Depending on the value of your savings and the cost of bank transfers this option may be less attractive.

Putting your money in a holding currency will hurt you on the spread...losing twice vs. once.. and for such a short period of time will most likely result in you taking a small loss...