Korean Job Discussion Forums

[TJ]

Are there any budding economists out there who are prepared to make a prediction as to whether the Korean won will increase or decrease in value over the next 12 months ?

I am about to return to Korea and plan to send part of my salary back to Australia. However, at the moment, the strong Aussie dollar and the comparatively weak Korean won means I will not get much for my won.

Do I hang on to my won and wait for a better exchange rate or do I 'get rid of it' as quickly as I can ?

[Mr. Pink]

I'd say holding onto it is the smartest thing to do.

Those who send money home "just to send money home" can take the time to hold it.

Those who send money home to pay bills, student loans or perhaps pay off a mortgage or have some other investments going, they will have to suffer through the exchange rates.

The exchange rates should get better, but I am predicting they will stay around the same for most of the year.

[dominic]

The rate today at the bank was 924 per canadian dollar, I'll be lucky if I can keep sane until June, this is the worst rate ive seen since i started in korea 3 years ago. I predict it's going to get much worse, the economy is terrible, looking forward to going home where I dont have to worry about exchange rates.

[rapier]

The banks are wisely stopping granting long term loans now. might improve things somewhat, might not.

[prairieboy]

Mr. Pink said it best. If you send home money just for the sake of sending it home then you can afford and should hold on to it for a while.

I'm in the situation where I have to send it home so I will suffer until the rate takes a turn for the better.

If you do have to send home money then send only what you have to send to cover your obligations and bank the rest here. That's what I'm going to start doing in order to help cut my losses.

Cheers

[dominic]

i agree with PB, that's excatly what I was doing the past few months, but i had to send home today, it was still painful, the more i sent the more i lost it felt like

[Ya-ta Boy]

The government and the chaebols have decided back in '98 that they want the won to stay around W1200 to the US dollar. The Chinese yuan is pegged to the US dollar and the US and China are Korea's largest trading partners.

A few months back when the dollar began its big slide, there was near panic in the boardrooms. The won is now back to W1200 to the dollar.

It makes sense. The only part of the Korean economy that is doing well is exports. To keep exports competitive, they need to keep the won in line with the dollar/yuan.

When the US dollar goes up, the won will improve against other currencies.

That is how it was explained to me anyway.

[Mr. Pink]

[matthews_world]

Koreans are overextended on their credit cards. Family debt is at an all time high. I've heard this on several news programs.

Pretty soon, parents won't have the cash to send their kids to hagwons

[prairieboy]

No kidding a big change. Taking roughly 350 bucks or more out of my pocket each month for the last year compared to summer 2002. That really, really hurts!

OUCH!!!

But I hope it turns soon.

[Paji eh Wong]

I think the exchange rates will go down, sooner rather than later. Most of the indicators in the US seem to be up lately. The Canadian dollar has been fluctuating a lot, as much as 3/4 of a cent in a day. In the meantime, I'm looking into a US$ account. Good luck.

[Hyalucent]

[Eazy_E]

Before I go home I could convert all my cash into US $ traveller's cheques (I'm Canadian). Then wait and play currency speculation, as long as I don't need the money right away....