South Korean Won (KRW)
The South Korean Won (KRW) is the official currency of South Korea, a dynamic and technologically advanced country in East Asia.
Known for its vibrant economy and strong global trade presence, the Won plays a vital role in both regional and international markets.
As South Korea is one of the major economic powerhouses in Asia, the South Korean Won is a key currency to watch, often reflecting the country’s economic health and trading activities.
On this page, you will find information about the Won’s history, current exchange rates, and other useful details that provide insight into its role in the global economy.
About the South Korean Won
- Currency Name
- South Korean Won
Nicknames: - Nicknames
- Won, Jeon, Tongjang
- Symbol
- ₩
- Minor Unit
- Jeon
- Minor Unit Symbol
- –
- Country
- South Korea
- Central Bank
- Bank of Korea
- Year Introduced
- 1962
- Countries of Usage
- South Korea
- Major Currency Rank
- 12
First Woman on Banknotes:
The ₩50,000 banknote, introduced in 2009, features Shin Saimdang, a famous artist, poet, and calligrapher from the Joseon Dynasty. She is also the mother of Yi I, who appears on the ₩5,000 note. Featuring her image was a major step toward recognizing the role of women in Korean history and culture.
The Economic Miracle and the Won:
The South Korean won is symbolic of the country’s incredible economic growth, often called the “Miracle on the Han River.” South Korea transformed from a war-torn country to one of the world’s leading economies in just a few decades, and the stability of the won is a reflection of this economic success.
Dual Language Banknotes:
South Korean banknotes are printed in Korean Hangul as well as in English. This reflects the increasing importance of international tourism and trade, ensuring that visitors can easily understand the currency.
All KRW Exchange Rates
History
The South Korean Won was first introduced in 1945, shortly after Korea gained independence from Japanese colonial rule.
The original Won went through significant changes due to the economic instability that followed the Korean War, leading to the introduction of the current version in 1962, which has since undergone multiple revaluations and reforms.
These reforms were aimed at stabilizing the currency amid the rapid industrialization and modernization that South Korea experienced during the latter half of the 20th century.
In the 1990s, the Bank of Korea (BoK) shifted towards more market-oriented policies, allowing the Won to float freely against other currencies.
This shift was significant as it allowed South Korea to better integrate into the global economy and respond more flexibly to financial crises, such as the Asian Financial Crisis in 1997.
Today, the South Korean Won is backed by a robust economy and features a range of advanced security measures to prevent counterfeiting, reflecting the nation’s commitment to financial security and innovation.
A Closer Look at the Last Year
In the past year, the South Korean Won (KRW) has experienced both gains and losses against major global currencies. Here is an overview of its performance against the Euro (EUR), US Dollar (USD), and British Pound (GBP):
- EUR/KRW: The exchange rate began the year at about 1,350.00 KRW per EUR. There was a sharp increase in the exchange rate between February and April, which peaked at about 1,475.00 KRW per EUR, suggesting a weakening of the South Korean Won against the Euro. After peaking in April, the exchange rate fluctuated with noticeable spikes and drops throughout the rest of the year. The latter half of the year was characterized by repeated volatility but generally remained above 1,400.00 KRW per EUR. The EUR/KRW exchange rate closed the year around 1,425.00 KRW, reflecting sustained weakness in the Won against the Euro.
- GBP/KRW: The exchange rate began the year around 1,500.00 KRW per GBP. Throughout the year, there was a gradual upward trend in the exchange rate, indicating a strengthening of the British Pound against the South Korean Won. There was a significant rise between June and September, during which the exchange rate climbed above 1,700.00 KRW per GBP, reaching its peak. After reaching its peak in May, the rate remained relatively high, fluctuating between 1,600.00 and 1,650.00 KRW per GBP, showing several instances of increased volatility.
- USD/KRW: The year began with the exchange rate near 1,250.00 KRW per USD. During the early part of the year, the exchange rate increased significantly, indicating a strengthening of the U.S. Dollar against the South Korean Won. The rate showed high volatility during the mid-year months, with sharp movements up and down. From September to November, there was another significant upward movement, with the exchange rate peaking above 1,350.00 KRW per USD. Towards the end of the year, the trend reversed, and the rate declined back towards 1,275.00 to 1,300.00 KRW per USD, suggesting a strengthening Won or a weakening Dollar.
Correlations
This correlation matrix compares 5 currency pairs, highlighting how strongly their movements align. High positive values indicate pairs that trend together, while strong negative values suggest inverse moves. Correlations closest to zero reflect the weakest relationships, meaning the pairs move largely independently and can provide diversification opportunities. For the South Korean Won, the strongest alignment is between KRW/AUD and KRW/EUR (0.792), showing they often move in the same direction. The weakest connection is between KRW/AUD and KRW/GBP (-0.100), where the correlation is closest to zero, indicating minimal relationship in price movements.
The South Korean Won: What Lies Ahead?
Looking ahead, the South Korean Won (KRW) faces both opportunities and challenges.
The global economic environment, characterized by interest rate decisions by major central banks like the Federal Reserve and the European Central Bank, will heavily influence the Won’s trajectory.
South Korea’s dependence on exports, particularly in key industries such as technology, automobiles, and shipbuilding, will also be crucial in shaping the currency’s performance.
The Bank of Korea (BoK) is expected to continue its efforts to maintain a balance between supporting economic growth and managing inflation.
This includes potential interventions in the foreign exchange market to mitigate excessive volatility in the Won’s value.
Additionally, South Korea’s ongoing investments in digital infrastructure and initiatives like the development of a central bank digital currency (CBDC) could strengthen the country’s financial system and, in turn, enhance the Won’s stability.
Overall, while the South Korean Won may face periods of volatility driven by external factors, the strong economic fundamentals and strategic initiatives by the Bank of Korea provide a hopeful outlook for the currency.