By Well here is some slightly positive news for everyone getting paid in won out there:
The South Korean won rebounded slightly but remained at one of its lowest values against the dollar in 11 years after currency markets closed Tuesday.
The currency gained 18 won to rise to 1,552 to the dollar Tuesday after news of government intervention to prop up the currency, according to the Yonhap News Agency. The won fell Monday on the heels of the U.S. Dow Jones Industrial Average plummeting below 7,000. Most world markets followed the Dow’s dive.
The weak won means goods and services will continue to be a relative bargain for servicemembers paid in dollars. But it also means that the cost-of-living allowances servicemembers enjoyed when the won was stronger will not be back anytime soon.
The won has nose-dived since 2008 as investors have flocked out of South Korea’s comparatively less-developed economy. A year ago, the dollar bought about 950 won, about 600 fewer than it buys today.
Meanwhile, the Japanese yen barely budged at 97.65 to the dollar just before markets closed Tuesday.
The recent two-week dollar spike against the yen reverses months of steady decline. In August 2008, a dollar earned 110 yen, but it weakened steadily to the point where it was hovering around 87 yen just before Christmas, trickling upward to 90.54 yen on Feb. 12.
Japan’s currency has strengthened as investors have acquired yen while selling riskier investments worldwide.
However, the strong yen has crippled Japan’s economy as its companies struggle to sell exports such as electronics and vehicles, which are now more expensive in key consumer markets. [Stars & Stripes]
It isn’t much but hopefully the won doesn’t continue to drop for all of you affected by this.
6:18 am on March 5th, 2009 1
Sounds like now is the time to buy won. But one never knows – could go up to around 2000 if the world economy keeps tanking. May be a way to recover some of the losses in the US stock market. 1997 was worse, but never know what will happen in the future. Any English teaching contract should include a clause regarding won changes – but most probably don’t.
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7:07 am on March 5th, 2009 2
“Any English teaching contract should include a clause regarding won changes.”
Brian’s got a post on this as well. Why would Korea put a clause in there? The ESL industry already sucks enough money from Korean citizens and this would only make it worse.
I get paid in won and it’s unfortunate that some people are getting screwed by the exchange, but it’s not Korea’s problem. Why should Korea pay extra for people who have to pay loans/debt at home?
If I was looking to start teaching abroad and needed to send cash home, I would not come to Korea. It’s simple.
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9:55 am on March 5th, 2009 3
^ I predict the number of English teachers will increase due to all the unemployed people in the West heading on over. Even with low pay with possibility of getting better in the near future when the Won recovers, it’s far better than no pay and being on welfare.
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3:24 pm on March 5th, 2009 4
That’s true, but a clause will not be added.
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4:11 pm on March 6th, 2009 5
One reason to put in such a clause would be to try to attract (or keep) quality teachers….but the hakwon industry doesn’t give a crap about quality to begin with….
My wife and I were discussing going to Korea for a year if I could find an adequate teaching gig in a college. We’d like to have 1 or 2 kids in the next few years, and we could save much more in Korea — if the exchange rate weren’t tanking…. Considering how much you can make per hour doing privates, it might still be worth it — but we definitely have to consider the exchange rate problem if this downturn in the global economy continues….
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