Korean Job Discussion Forums

[ChuckECheese]

If won rate drops to 1200 (that would be more than 20% of salary cut), what would you do?

Otherwords, if you were making 2,000,000 won, you would be losing more than 400,000 from the current rate. That's huge pay cut.

Would you ask your boss to increase your pay? If you did ask and your boss refuses, then what would you do?

[Smurfette]

Already thought about it......if its more profitable to be home......they're gonna have to make a tough choice...cuz money talks and bull.......

[CBP]

Where have you heard this? Is this common knowledge over there? Does it have something to do with what's happening in North Korea?

[Sleepy in Seoul]

If the exchange rate dropped to 1200 won to the dollar, I would lose half what I am currently making. It's a 50% pay cut - get your figures right! But then, money isn't everything.

Of course I wouldn't ask my boss to give me a pay rise; I'm not an idiot. I signed a contract to work for a nominated period of time at a specified pay per month in won. The exchange rate has nothing to do with my boss (or anyone else's boss) and I would not expect him to front up for something beyond his control. If I were stupid enough to ask for my boss to give me a pay rise and he refused, then I would stick it out for the term of my contract, as I am contractually obliged to do. Unless, of course, there is a clause in my contract that legally permits me to break my contract and I want out.

[just because]

there is no way your boss will give you a pay rise if the won dips to 1200. If things get real bad it will go a lot lower than that. It was close to 2000 won in 1998...

[regicide]

One thing to keep in mind is that you are only losing money on the portion you send home or buy dollars with. Depending on your lifestyle, this would only be on 500,000 or 1,000,000 of your total pay. If you are just getting a basic salary of 2 million, the amount affected would be 50 or 75% of your salary. Just to ease the pain.
As a side note, I paid between 1100 and 1300 for a dollar during the 2002 and early 2005 period. I actually went back to my old school and I guess he could have asked me to work for less, since the rate went down. I would have used the same argument since I spend around 600,000 here anyway per month and local prices have gone up since 2002.

[CBP]

I'm confused. Are you talking American or Canadian dollars? At www.xe.com, the current exchange rate is $1 U.S. = 963.525 South Korean won. But you saying that the rate could drop to 1200 won and that that would represent a 50% pay cut. What aren't I understanding?

Thanks!

[ChuckECheese]

[CBP]

Dang it. Major double duh. So I sucked at economics and common sense in school, despite the math scholarship. (No kidding!)

So ... for the logic-challenged:

The stronger the won, the closer it approaches the American dollar. (I'm American, so that's my example. No imperialism implied.) The $1 = 963 won rate would start to even up.

But when the amount of wons per dollar increases, this represents a weakening of the won, because one dollar can suck up that many more won. But if we're being paid in won, one won would buy me that much less of a dollar.

Ahhhhhhhh. The light once again shines in the darkness.

[ChuckECheese]

[CBP]

Geesh.

[dogshed]

I'm hoping the number of won/dollar goes up really high before I fly to Korea and exchange my dollars for won next week and then drops before I start sending money home.

I'm hoping the US economy will collapse and I can buy my mom a house for a few hundred won.

-Jeff

[Hyeon Een]

[vexed]

Sorry if this has been covered but my understanding of economics is diabolical.

If the won hypothetically dropped to 1200 (or more), would it (and how would it) affect a person in Korea spending money in Korea? Or does it only affect you if you want to transfer money out of Korea?

[CBP]

Bite me, bubba.