It will be interesting to see over the next year what effect the rising won will have on the Korean economy:
A SURGING won and waning yen are eroding the bottom lines of South Korea’s export powerhouses, which are feeling the pinch after years of gobbling up global market share from their Japanese rivals.
The South Korean currency has soared 27 per cent against the yen since the beginning of 2012, as anticipation of monetary easing promised by Japan’s new leader Shinzo Abe weakened the yen across the board.
And the won gained 8.6 per cent against the US dollar over the same period, touching a 17-month high of 1,054.49 on January 15.
In contrast, the yen slumped last week to its weakest level against the greenback.
The trend is being watched anxiously in business circles in South Korea, where overseas sales account for nearly half of the country’s export-reliant economy. [Business Times]
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