South Korean Won (KRW)
The South Korean Won is a heavily traded Asian currency. South Korea's export-driven economy means the won's value is closely tied to global semiconductor, automotive and shipbuilding demand.
Convert KRW
1 KRW in major currencies
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A short history of the South Korean Won
South Korea adopted the won after liberation in 1945, replacing the yen-based currency used during the colonial period. A new won was introduced in 1962 after a redenomination, and the currency moved through fixed and managed regimes before becoming substantially more flexible after the Asian financial crisis of 1997–98.
The modern won reflects South Korea's transformation from an aid-dependent economy into a major exporter of semiconductors, cars, ships, batteries and entertainment. It is not fully free of official influence: the Bank of Korea and authorities monitor disorderly moves, especially when trade, security or global funding conditions deteriorate.
What moves the KRW exchange rate
KRW is an export and technology currency with strong links to the global manufacturing cycle.
- Semiconductors and electronics: chip prices and the technology investment cycle are crucial for export receipts
- China and the United States: both are major trade and supply-chain partners, so their growth and policy affect KRW
- Bank of Korea and Federal Reserve policy: the interest-rate gap influences portfolio flows and the cost of imported funding
- Risk and geopolitics: global shocks and tensions on the Korean peninsula can prompt rapid moves into the dollar
The South Korean Won in practice
South Korea is highly digital for daily payments. Cards and mobile wallets work in cities, transit cards handle public transport, and cash is still useful at markets, small restaurants and some rural businesses. ATMs may charge foreign-card fees or impose local limits, so travelers should keep a backup payment method.
For remittances, Korea is home to many foreign workers and students, and licensed banks and specialist providers serve corridors across Asia. Compare the amount received in the destination currency. Korean companies often hedge KRW because export prices may be in dollars while wages and operating costs are in won.
Popular South Korean Won conversions
USD/KRW is the main reference pair and a closely watched Asian risk indicator. JPY/KRW reflects the competitive relationship between Japan and Korea, while CNY/KRW tracks trade with China. EUR/KRW and SGD/KRW are common for European and regional business flows.
Frequently asked questions
Why is the won sensitive to chip prices?
Semiconductors are a major Korean export, so chip demand and prices affect the country's trade income, corporate profits and foreign-investor flows. The won can respond before the data appears in the trade figures.
Is the South Korean Won freely floating?
It is market-determined but not ignored by authorities. The Bank of Korea and government can respond to disorderly moves, liquidity stress or exceptional volatility, so KRW is best described as a managed or monitored float.
Do I need cash in South Korea?
Cards and mobile payments are excellent in cities, but cash remains useful at markets, smaller restaurants and a few transit or vending situations. Keep some won and a backup card.