Korean Job Discussion Forums

[crazy_arcade]

I'm sitting on a lot of cash in my bank account. I've been waiting for better rates, however, I don't think it's gonna happen. All signs point to more weakening.
I think I'm gonna take the weak rate while I can. Right now, I'm really worried about the won tanking.

[Zenas]

Open a FX Swiss Franc account at KEB. Historically, the safest currency in times of trouble like this. Better yet, buy gold.

Sleep well at night.
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[aka Dave]

For what it's worth, someone posted an Economist (the magazine) long term won forecast, and it was quite good. I have some won in the bank, and I'm waiting 6 months or so before I sent it home.

Sure, if oil goes up way more that will hurt the won. But it'll likely hurt the dollar as well.

[cedarseoul]

the won is not likely to tank in the near future, as both the finance ministry and the BoK are focusing their energy right now on controlling local inflation, and are consequently taking action to prevent drastic movement in the currency.

most of the forecasts that i've read predict slight weakening by the end of the summer, followed by a rise in the fall. the days of 900-950/USD may be over, but i wouldn't panic just yet.

[michael5799042]

Unless you are a currency trader, you should probably keep your money in the currency that you plan to spend it. If you are a currency trader then think about why you think the won will go up vs. another currency.

Although, the Korean government is now trying to up the value of the won. However, they may just be throwing away their currency reserves in the process. Which could just make the matter worse.

Good article below, says the won is up 0.6% today.

http://www.reuters.com/article/marketsNews/idINSP4128920080707?rpc=44&pageNumber=1&virtualBrandChannel=0

[bassexpander]

There is a lot of talk in the USA right now (I'm here) about the high oil prices bursting at some point. The prices, as people are now starting to say, are due to people playing in oil speculation.

[Milwaukiedave]

Keep your money in Won unless you need to send some back from a specific reason. Things may get better later this year.

[Kiarell]

with the way the korean and us economies are linked if the won tanks much more the dollar surely will too and vice versa. As oil goes up the dollar and the won both suffer, so relatively it wont matter. And Korea's export economy will suffer if the US does, so....yeah....

On the other hand, the long term forecast is decent and like the others have said, the govt is (finally) being pressured to address inflation and if public opinion is taken into account at all the govt will adopt a stronger won policy. I only hope they focus on localizing and making a more self-sustaining economy. This whole "let's lube up and be the bitch for free trade and globalization by building canals and exploiting cheap labor while completely dependent on imports and exports" thing is very unstable and though 2MB would like nothing more, it seems that things could change yet. Current events are showing how unsustainable the global economy is. (every nation dependent on food imports, there are goods shipped from USA to China and back just to be assembled.....hmmm rising oil costs might affect that).

Addititonally I wouldn't fret about a complete collapse like the late 1990s. The West got most of it wanted out of that engineered crash and Wall Street's focus ain't on gobbling up Asia like it was in the 1990s.

The won might hit as low as W1000 =$.94 but all the forecasts place it as bouncing back at the end of this year like Milwaukiedave said.