The Korean won (symbol: ₩; code: KRW) is the official currency of South Korea.
Current Status:
- As of December 31, 2024, the Korean won is facing some challenges due to political instability and a strong US dollar.
- The won/dollar exchange rate has surged, reaching its highest level in 15 years. This has led to concerns about the South Korean economy.
- The Bank of Korea and the Ministry of Economy and Finance have intervened in the market to try to stabilize the won.
Key Factors Affecting the Won:
- Political instability: The impeachment of President Yoon Suk Yeol and the subsequent political turmoil have led to a loss of confidence in the Korean economy, causing the won to weaken.
- Strong US dollar: The US Federal Reserve's decision to slow down its rate cuts has contributed to a strong dollar, which in turn has put pressure on the won.
- Foreign investor behavior: Foreign investors have been selling off Korean treasury bonds and stocks, further weakening the won.
Outlook:
- Global investment banks predict that the won will remain weak in the coming months, hovering in the mid-1,400s level against the dollar.
- The political situation and the strength of the US dollar will continue to be major factors affecting the won's value.
Additional Information:
- The won is subdivided into 100 jeon, although jeon are no longer used in everyday transactions.
- Banknotes are issued in denominations of 1,000, 5,000, 10,000, and 50,000 won.
- Coins are issued in denominations of 10, 50, 100, and 500 won.
Please note: The information provided here is based on news articles and reports available up to December 31, 2024. The situation may evolve rapidly, so it's advisable to consult the latest financial news and expert opinions for the most up-to-date information on the Korean won.