Korean Job Discussion Forums

[Ya-ta Boy]

At 11:52am the Won/US dollar exchange rate is at W1266.00, down another W42.50 from last week. This is what it was an hour ago: At 10:50am, the exchange rate is W1262.00, a drop of W38.50 from last week.

The headline story in the Chosen Ilbo:

Korea Takes Initiative for Asian Crisis Fund

The government wants to take the initiative in forming an �Asian Fund� with US$80 billion to tackle the global economic crisis. Members of ASEAN plus China, Japan and Korea are to participate. The plan to form a fund of this kind was originally agreed in May 2006 to prevent another Asia-wide crisis like the one in 1997, but negotiations stalled over the contribution to be made by each country.

http://english.chosun.com/w21data/html/news/200810/200810060005.html

Before, I was anxious, now I'm officially nervous. I'm starting to have flashbacks of 1997 and that's not good.

[Milwaukiedave]

I wasn't here in 1997, but I've heard stories about how bad it was. This scares me a little, but unfortunately there is little we can do about it at this point. Thankfully last year I got a good portion of my money out of the country and won't have to transfer any for awhile.

When I arrived at the beginning of 2004, the exchange rate was 1200=$1. I wouldn't be surprised to see it go up to 1300 at this point (it's almost at that right now). The exchange rate is going to suck for about the next two years the way I see it. If you can, hold your money.

[Tiger Beer]

I gotta check out the Japanese Yen.

[mises]

The ROK is in for some very rough economic times. In fact, if Obama is elected the FTA would be ripped up and "fair trade" with them ushered in. Korea needs to adapt to the changing economy but has a political economy that his highly unable to do so.

Will there be a '97-style collapse? No, I don't think so. A serious equity crash is likely as it rising unemployment and the rest. But a currency crises? Nah.

[Ya-ta Boy]

I checked the exchange rate when I got out of class. At 10:08 this morning it was at 1340.00, down W71 from yesterday. Now, at 11:13 it is the same. My fear is that it has hit the floor, the daily allowable, and trading has stopped. The alternative is that it has stabilized.

[mises]

Are you noticing everyday price increases? Can you feel and see inflation?

[Ya-ta Boy]

I don't do much shopping except for food. Shopping is a chore and I'm terrible at it. Not being a comparison shopper, I just ignore the prices because I know I want that item so I pay whatever. It isn't like I'm going to drive across town to another grocery store to buy a bunch of celery to save W10.

I notice the changes in gas prices more, but I only fill the tank once every 5-6 weeks (I don't use my car very much except to get to work.)

My big expense is books. I went out a couple of weeks ago when this thing started and bought a stack of books because I knew I wouldn't want to be ordering any from Amazon while the exchange rate is high, although at Christmas I will, regardless of the price.

[huffdaddy]

[Manner of Speaking]

Mmm. My biggest "uncontrollable expense" is Christmastime, presents for the family, nieces and nephews, possible travel. Surprisingly, there's been no change in the won-Canadian dollar exchange rate...for which I am somewhat pleased and grateful, but I am waiting for the other shoe to drop.

I don't have any bills or mortgages back home in Canada, and most of my money here is just parked in a regular savings account, so I guess I'm ok. But I think I will really get dinged on overseas travel...however food prices are noticeably going up, too.

[Return Jones]

[Manner of Speaking]

Sorry, I should have been more precise. I meant not much change in the last couple of days. You're right, it's taken a serious ding in the past year. I don't feel it so much because I'm not sending any money home.

[Big_Bird]

MOS: Your avatar is horrid!

[Manner of Speaking]

ㅋㅋㅋ It's from an 80s movie called Manhunter. Bit of a cult flick.

[aka Dave]

I posted this elsewhere, but Europe is also going into the tank. This isn't an Asian crisis. It's American crisis that is dragging the world economy down with it.
http://www.lemonde.fr/

There were some posts early about how the crisis had made America a 2nd rate power and "irrelevant". If only that were so. This could very, very ugly very very quickly.

Ironically, it really only illustrates how dependent Korea is on America for its economic well being. I don't see them abandoning their English studies any time soon. The reason the won is plummeting is *Koreans* are chasing dollars.

[Manner of Speaking]

BB,

This better?