Korean Job Discussion Forums

[rickpidero]

According to this website: http://www.wikinvest.com/wikinvest/api.php?action=viewNews&aid=324838&page=Korean_Won&format=html&comments=0

...the won will be at 1,150 by the years end. The dollar keeps dropping and dropping.

Although some have been saying the won is due for a big let down during the holidays, I guess my question is why? Is it because everyone is going to fall or is it just pessimism?

[azzwell]

and Mr doom and gloom says....
take it away asmith

[asmith]

[SOOHWA101]

[Ya-ta Boy]

Korea's largest trading partner is China. Korea has managed over the last decade or so to diversify her partners to include China, the US and Japan in roughly equal measure, with the EU and then other countries at smaller amounts. It's the best possible strategy for a country that relies on trade for such a large portion of its economy.

Anyone who takes their economic advice for anyone on Dave's is a fool.

[T-J]

[asmith]

[T-J]

Don't get me wrong. I'm not an expert in the field by any stretch of the imagination. I think that the devaluation of the Won had much more to do with account reserves to pay loans, foreign investment contraction, and a global demand for dollars, than actual consumer consumption in the U.S.

[Pwillig]

I think that the won is still very much dependent upon the U.S. economy. Just look at how the Euro and Yen rebounded and are near pre-crash exchange rates (the Yen being actually stronger now) to the dollar while the won is still hitting a brick wall at 1220-1290.

[steveinincheon]

The won was not premeditatively devalued, it did have a lot to do with what T-J said. I think that Korea has decoupled at least a bit from the American economy, but given that China is Korea's largest trade partner and the Chinese RMB is still pegged to the dollar, I think the USD-WON rate is still very important to Korean exporters, even if decoupling is going on.

Still, I might as well go to a fortune teller to predict the exchange rates, given the accuracy of a lot of the forecasts I've seen this past year.

[cdninkorea]

[gakduki]

I love all the talk about how countries should focus on China more than America. Its a great idea, 1.2 billion, most of whom spend their money on subsitnence, while America has 350 million who spend their money on frivolous electronic imports. China will one day get angry at Korea over a land dispute or something and boycott them (just to make their consumers buy their own goods.) USA would never do that. The American economy is still 3 times the size of China's and the predictions that it will be de-throwned anytime soon are just theories. They don't consider limited resources, internal political problems, markets already flooded with cheap junk etc.
As for the won, who knows what will happen to it. I heard 1200 is the new target range(they gave up on 1000) and its unlikely to fluctuate significantly from that mark over the next year.

[Cheonmunka]

[SOOHWA101]

[Konglishman]