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WON (KRW) Fluctuations
« on: April 06, 2013, 01:25:13 pm »
everytime NK says or does anything, the won drops. i keep checking xe.com, and its very depressing. if you simply wish to live in korea...then its not a problem, but if you rate it to the USD then its a nightmare. I have talked with my family and I think after this year, as much as I like my schoosl, students, coworkers....I will leave Korea for greener pastures. Considering most of us are capped at the amount we can earn here anyway. Anyone else thinking to leave? Retire? Go home? Based on the NK threat (war, economy effects)?
« Last Edit: January 27, 2014, 02:45:30 pm by Davey »


Re: Won dropping like a rock
« Reply #1 on: April 06, 2013, 02:26:05 pm »
Nope. Speaking just financially, I can't think of a single job I could realistically land in the DC area that would allow me to make the large payments toward my student loan that my Korea job allows me to make. The value would have to be catastrophically low before there was even any comparison for me.


  • Chicagohotdog
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Re: Won dropping like a rock
« Reply #2 on: April 08, 2013, 09:54:38 am »
Going home?  Not planning on it yet.  Planning on doing a transfer now before it drops any lower? You bet.
Discount of up to $10 off of first order on iHerb.com ---> CHK096

$10 off of a Tour booked through Viator.com (You get $10 off and I'll get $10 off - that could be an airport ride): https://www.viator.com/raf/PDPOTBSYI

http://travelhacking.org/sammery-wants-you


  • damof
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Re: Won dropping like a rock
« Reply #3 on: April 08, 2013, 10:03:33 am »
I don't understand. How is this a bad thing for a foriegner? Every time I send money home I'm getting more in Euro than I was previously.


Re: Won dropping like a rock
« Reply #4 on: April 08, 2013, 10:05:44 am »
I don't understand. How is this a bad thing for a foriegner? Every time I send money home I'm getting more in Euro than I was previously.

For Euro it might be fine- but the original poster was saying that for U.S. it's bad.


  • jenglish
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Re: Won dropping like a rock
« Reply #5 on: April 08, 2013, 10:07:01 am »
I don't understand. How is this a bad thing for a foriegner? Every time I send money home I'm getting more in Euro than I was previously.

If the won continues to slide you'll start to notice :shocked:


  • Chicagohotdog
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Re: Won dropping like a rock
« Reply #6 on: April 08, 2013, 10:08:38 am »
I don't understand. How is this a bad thing for a foriegner? Every time I send money home I'm getting more in Euro than I was previously.

It was like that for a while with U.S. currency too.  But in recent weeks it is taking more won to equal $1 than it had been say a month ago, and definately more than in January or the end of 2012.
Discount of up to $10 off of first order on iHerb.com ---> CHK096

$10 off of a Tour booked through Viator.com (You get $10 off and I'll get $10 off - that could be an airport ride): https://www.viator.com/raf/PDPOTBSYI

http://travelhacking.org/sammery-wants-you


Re: Won dropping like a rock
« Reply #7 on: April 08, 2013, 10:17:21 am »
It's getting crushed against the .

March 10: 1 = ₩1621

April 8: 1 = ₩1745

That's bad news for sending money home.  :-[

If you sent home 1000 today you would lose 75 or ₩124,000  from 1 month ago.  :huh:


  • chuck2657
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Re: Won dropping like a rock
« Reply #8 on: April 08, 2013, 10:19:39 am »
I don't understand. How is this a bad thing for a foriegner? Every time I send money home I'm getting more in Euro than I was previously.

I'm starting to think you're delusional.  No offense :P.


Re: Won dropping like a rock
« Reply #9 on: April 08, 2013, 10:20:19 am »
I don't understand. How is this a bad thing for a foriegner? Every time I send money home I'm getting more in Euro than I was previously.
You clearly don't understand.
You can not be getting more Euro than you were previously. The won has weakened significantly in the last month. Going from 0.00071 EUR per KRW to about 0.00067 now. This means that if you sent 1m won last month it would be converted to 710 EUR, but now it would be 670 EUR.
It's good news for a foreigner coming to Korea and changing his home currency to won, but bad news for a foreigner earning won here and sending it home.


Re: Won dropping like a rock
« Reply #10 on: April 08, 2013, 10:20:48 am »
It's quite depressing for the Canadian dollar too. In two months, 1000 won has slid from 95 cents to 89 cents! That makes a huge difference when you're sending money home in large amounts.   :sad:


  • damof
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Re: Won dropping like a rock
« Reply #11 on: April 08, 2013, 10:27:38 am »
I don't understand. How is this a bad thing for a foriegner? Every time I send money home I'm getting more in Euro than I was previously.
You clearly don't understand.
You can not be getting more Euro than you were previously. The won has weakened significantly in the last month. Going from 0.00071 EUR per KRW to about 0.00067 now. This means that if you sent 1m won last month it would be converted to 710 EUR, but now it would be 670 EUR.
It's good news for a foreigner coming to Korea and changing his home currency to won, but bad news for a foreigner earning won here and sending it home.


I checked it out and you appear to be correct. Those figures you have are pretty close to the amount I got last time I sent cash home and the current amount I would get. Sorry (never claimed finance was a strength of mine).

Does it make me depressed? A little, but not enough to consider leaving. Still, I have that mastercard bill to pay off still.


  • nermal
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Re: Won dropping like a rock
« Reply #12 on: April 08, 2013, 10:37:37 am »
I've been checking on a daily basis now that it slipping so quickly, but it's just around the same as it was when I arrived last summer. If there isn't a turnaround in the next few months I'll start to get concerned.
Looking back on historical rates I saw there was a real golden age from '06 to '08 where the $1 was below 1000W consistently. That would've been wonderful as I send all my money home. Though I don't know if my salary would have been the same then.
Anyway, eff NK.


  • chuck2657
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Re: Won dropping like a rock
« Reply #13 on: April 08, 2013, 10:52:56 am »
I've been checking on a daily basis now that it slipping so quickly, but it's just around the same as it was when I arrived last summer. If there isn't a turnaround in the next few months I'll start to get concerned.
Looking back on historical rates I saw there was a real golden age from '06 to '08 where the $1 was below 1000W consistently. That would've been wonderful as I send all my money home. Though I don't know if my salary would have been the same then.
Anyway, eff NK.

Considering all the recent events, I suppose the drop could be worse.

It was getting close to the 1/1000 rate earlier.  Hopefully things settle down and it gets back to that point.  That being said, with Japan's devaluing recently I'm afraid Korea may try to follow suit. 

Personally, I'm trying to wait until it gets pretty close to the 1/1000 before a major remittance.  We'll see if I make it.


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Re: Won dropping like a rock
« Reply #14 on: April 08, 2013, 11:33:45 am »
Based on Money-Trends that i have seen with the Won, the Spring-Fall months tend to be worst for sending USD home. A couple months in the winter (end of December-Beginning of February) seems to be the most ideal time for having the USD and KRW very close together.

So, now, would be a 'bad time' to send home money anyways, this has been my experience for the past 3 years of 'watching' the exchange rates.
You only live today once. You wont get a second chance. You wont get to live it twice. So make the most of it.

A sane man in an insane world will appear insane.


Re: Won dropping like a rock
« Reply #15 on: April 08, 2013, 11:35:32 am »
everytime NK says or does anything, the won drops. i keep checking xe.com, and its very depressing. if you simply wish to live in korea...then its not a problem, but if you rate it to the USD then its a nightmare. I have talked with my family and I think after this year, as much as I like my schoosl, students, coworkers....I will leave Korea for greener pastures. Considering most of us are capped at the amount we can earn here anyway. Anyone else thinking to leave? Retire? Go home? Based on the NK threat (war, economy effects)?

This is true for the current crisis, but if you look back at the past few years for the South Korean won, it is not true. Even in 2010, when the Cheonan was sunk and Yeonpyeong was shelled, the won rebounded very quickly. The threat of North Korea is already priced in. The difference this time is that some genuinely believe war is going to break out. In 2010, nvestors were holding station much stronger than now. People don't trust Kim Jong Un as much as Kim Jong Il because he is still relatively "green." Kaesong was not shut either and that was when markets started to tumble in a bigger way.

If Korea comes out of this unscatched I expect it will be back to how it was before-one or two days of jitters on the markets after a provocation then back to normal.


  • jurassic82
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Re: Won dropping like a rock
« Reply #16 on: April 08, 2013, 11:47:54 am »
Maybe I have been here too long but it really hasn't changed that much (USD to the Won) than what I have ssen in the past. In 2008 when everything went to sh$% it was at 1,600 won to $1. That was really bad. Unless missles start landing Seoul I don't think we need to worry much.


Re: Won dropping like a rock
« Reply #17 on: April 08, 2013, 11:50:47 am »
It's getting crushed against the .

March 10: 1 = ₩1621

April 8: 1 = ₩1745

That's bad news for sending money home.  :-[

If you sent home 1000 today you would lose 75 or ₩124,000  from 1 month ago.  :huh:

When I first got here in 2009 it was ! pound to 1950. It's great if you're staying and my suggestion is to sit on your cash and wait for the won to get strong again. Personally, I don't care anymore as I'm a going to be living here long term


Re: Won dropping like a rock
« Reply #18 on: April 08, 2013, 12:03:37 pm »
It's getting crushed against the .

March 10: 1 = ₩1621

April 8: 1 = ₩1745

That's bad news for sending money home.  :-[

If you sent home 1000 today you would lose 75 or ₩124,000  from 1 month ago.  :huh:

When I first got here in 2009 it was ! pound to 1950. It's great if you're staying and my suggestion is to sit on your cash and wait for the won to get strong again. Personally, I don't care anymore as I'm a going to be living here long term

It's still a really good rate. As long as it stays within 1 to ₩1700-1800 then I'm happy.  ;D


  • chuck2657
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Re: Won dropping like a rock
« Reply #19 on: April 08, 2013, 12:07:18 pm »
This is true for the current crisis, but if you look back at the past few years for the South Korean won, it is not true. Even in 2010, when the Cheonan was sunk and Yeonpyeong was shelled, the won rebounded very quickly. The threat of North Korea is already priced in. The difference this time is that some genuinely believe war is going to break out. In 2010, nvestors were holding station much stronger than now. People don't trust Kim Jong Un as much as Kim Jong Il because he is still relatively "green." Kaesong was not shut either and that was when markets started to tumble in a bigger way.

If Korea comes out of this unscatched I expect it will be back to how it was before-one or two days of jitters on the markets after a provocation then back to normal.

The new leader and events represent uncertainty.  With more uncertainty, people are less comfortable about holding capital/reserves in the pertaining currency.

I don't think most investors think something *will* happen, just merely that it *could*; thus the drop in the currency.  Oddly enough, it might actually help Korea's slumping export market.