Korean Job Discussion Forums

benharing · Joined: 04 Dec 2007

I've been holding back transferring money until now, and have been bitten by it to say the least. I nees to transfer 20 mil won within 2 months? Whattaya think, hold on or cash in now at 1039?

IncognitoHFX · Joined: 06 May 2007 Location: Yeongtong, Suwon

What country are you from?

I know that the WON is gaining leverage in Canada but I heard it might be losing out in the US. I'd like to hear an economy-savvy fellow weigh in on this.

Thunndarr · Joined: 30 Sep 2003

ytuque · Joined: 29 Jan 2008 Location: I drink therefore I am!

wylies99 · Joined: 13 May 2006 Location: I'm one cool cat!

boardmanite · Joined: 09 Oct 2007

I think by the numbers you mentioned that you are talking about US dollars. I've been watching the rates closely for the past few months and the dollar is indeed getting stronger against the won, especially compared with last year. The good news is that the Korean central bank doesn't want the won to slide further because it makes imports more expensive, driving up inflation.

http://www.koreatimes.co.kr/www/news/biz/2008/07/123_27177.html

Long story short, in July the bank sold off nearly $10 billion dollars it had in reserves to try to prop up the won.

http://sg.news.yahoo.com/rtrs/20080804/tbs-korea-economy-reserves-b8dd11d.html

It worked temporarily and the won went from 1,050 back to 1,000. Not great, but at least you're not losing money when you transfer. However, there's downward pressure on the won and it seems to be headed back to the 1,050 mark, and some estimate it will hit 1,100 by the fall. (Doesn't seem like much of a change, but if you send back 20,000,000 won, at 1,100 you'd lose $2,000)

http://www.forecasts.org/won.htm

I'm thinking the central bank will intervene again soon, sending the won back down toward 1,000. Although, now that oil prices are dropping significantly, they may decide that it is unnecessary to intervene again. So who knows. I'm waiting and watching the rate daily. But I don't want to advise you to wait and have the won get weaker and weaker. It's a risk either way. Like the other poster said, any answer will only be a guess.

Good luck!

hubba bubba · Joined: 24 Oct 2006

Join Me · Joined: 14 Jan 2008

I've watched the won for almost five years and I would say you missed the boat when the Korean government took action a month or so ago. Ever since then the won has been going the wrong direction if you are sending money to the US. Realistically, what are the chances of the Korean government taking more action in the next two months when their first attempt did absolutely no good in the long (or realistically short) run (although I appreciate it as I ran to the bank and got a nice chunk of money out Laughing

). If you can't hold your cash here for 6 months to a year until things possibly improve, I would say send it tomorrow. If you are holding out for 900-950, I think those days are gone for a while to come.

Then again...I could be wrong.