Korean Job Discussion Forums

[jondepoer]

I've noticed there hasn't been a post on the state of the won lately. All I know is that my salary of 2,200,000 won is now worth $1800 CAD. When I arrived in January, it was worth $2000 CAD.

Of course this topic is always beaten to death in the forum, with usually the same old responses, but do people who follow these things have any insight into what's going on, or when we can expect some relief from the relentlessly downward trickle of the won?

Thanks.

[Senior]

It will go up, down or stay the same.

[World Traveler]

1,000 Won = 79 cents (USD). This is not good.

[Evanzinho]

Some of us don't send money back "home", so we don't watch what the Korean won does against any currency, US dollar, Canadian dollar, Zimbabwean dollar, whatever.

Inflation is more of a concern for me, personally.

[balzor]

[spc525]

The Bank of Korea announced yesterday that they will keep interest rates flat, but will raise them in the near future. The won is up today, maybe from that news a bit. When the BOK raises interest rates, the won will go back up. How far, remains to be seen.

Other factors such as what is happening in Europe with the weakening of the Euro has been pushing the dollar up and encouraging foreign investors to flee the Korean stock market. Both of these factors adversely affect the won.

Hopefully we'll be back in the 1100s vs the US dollar sooner, rather than later. Just root for the Korean economy to continue to perform well so the BOK has to raise interest rates to curb inflation.

[GoldMember]

The BOK in Korea is not independent. It is a tool of the government, which in turn is a tool of the chaebol. Inflation is rampant in Korea (check out grocery prices), yet the BOK does not increase interest rates. Rates are being kept low to help out struggling construction companies and keep the won low for exporters such as Samsung.
Other countries have been increasing rates so their currencies have been going up.

[TheUrbanMyth]

[jondepoer]

Thanks. That's roughly the response I expected. For me, I'm using credit cards I paid off two months ago when the won was higher, and I'm going to carry the balance until things improve.

Anyway, that's my strategy.

[8 years down]

[allovertheplace]

dont feel too bad indeed

when I first came three years ago I was making 2,300 USD, 6 months later 17,000 USD. Next year got a big raise and worked extra and still stuggles to get back to 2,300 USD.

[teretere]

Which is why one should think like a multinational corporation and earn a basket of currencies via the Internet.

[PatrickGHBusan]

Dear jondepoer,

This is the WON responding to you. I know you are confused but as a currency I tend to fluctuate according to the market so my value will rise and fall over the course of time.

I hope this helps.

The WON.

[pkang0202]

Korea wants a weak Won. That means other countries will use their stronger currencies in increase investment and buy more Korean products. Korea doesn't want to Won to get TOO low. Korea is perfectly happy keeping it between 1000-1500 won per US dollar. If it drops more than that, then the government will intervene, because then the weak currency will start doing more harm than good.

[PatrickGHBusan]

Good point pkang.

Here in Canada the Loonie to Dollar rate is starting to hurt. Par with the USD is not that great for the canadian economy.

It is always a balancing act with currency.