Korean Job Discussion Forums

[joesunsangnim]

I'm no economist but I watch the won religiously to check on my transfers home. So my question is simple...what is happening to the won? why in the last week alone have I lost about 130 bucks on a mil. won transfer to the states?

(an educated answer would be nice)

[Gatsby]

joesunsangnim wrote:

[thiophene]

[mises]

Storms a'brewing in the ROK.

[Join Me]

Today it started to head back in the right direction by about 20 points. Hopefully it will go a bit further and stay there for a while. Currencies fluctuate...that is life.

[kingplaya4]

For months in the early part of the year the government had a weak won policy in order to help out Samsung, Hyundai etc. But with the rise in oil prices and other raw materials of which Korea basically has none, almost everyone except the exporters was hurt because of inflation. So for a month Korea started sellling off their dollar reserves. But at this point, the won had trouble regaining momentum so Korea saw their action as basically a waste of their reserves. In August they decided to go to the sidelines and let the market determine the won's value. The market sees a lot of problems with Korea namely inflation, consumer debt, and a possible housing bubble. Now the government, fearing a repeat of the '97 financial crisis, is back to supporting the won.

I'm no economist, but I read the financial news all the time, and the markets appear to have strong psychological components and thresholds. I firmly believe that had the government not tried to weaken the won when it was 920 to the dollar, it never would have hit 1100 to the dollar now. It might have happened eventually, but at best we'd probably be trying to break the 1050 threshold, rather than possibly 1150 now.

If you've got money to send, I'd go ahead and send it, its strengthened a bit, and many are saying it will weaken further. Even if it does strengthen, it probably won't be significant any time soon.

[Gollywog]

I think what Koreans need to do to combat the plummeting won is hold some more of those candlelight marches throughout every city, town and hamlet in Korea. They need thousands of chanting elementary school children demanding that American bankers stop trying to destroy Korea's economy.

And to help get that message across, they (well, not the elementary children) should overturn police buses and tear them apart with their bare hands. Attacking police with rocks and throwing acid in their faces is a sure fire way to win friends and impress foreigners.

We need lots of banners showing cartoon pictures of the bankers, with American flags over their posteriors, being hung by the neck with their tongues hanging out. Put them up on the front of every school in Korea. Have every art class in Korea assign the students to make a painting showing how much they hate foreign bankers and investors.

Now let's see, what else can Koreans do to convince foreigners to invest in Korea?

Oh, yes. Take out full page ads in the New York Times saying "Invest in Korea, a world-class country with a stable economy and government, and people that love foreigners."

And put ads on CNN inviting tourists to visit Korea Sparking - sparking with candle lit mobs chanting Down With America, No FTA, or whatever they were screaming, that is.

That ought to do it.