Won-Dollar Exchange Rate Hits Lowest Level in Over a Year

The South Korean won has reached its lowest exchange rate against the US dollar in over a year and two months, plummeting to 1,349.5 won during trading. This marks a significant drop from the late May rates of around 1,509 won per dollar.

Song Min-seung, a traveler heading to the United States for his friend's wedding, decided to wait until the day before departure to exchange currency due to the downward trend in the won-dollar exchange rate. At the Incheon Airport exchange booth, he was able to get 1,409 won per dollar, more than 160 won cheaper than the peak rates.

The strong export performance of South Korean companies, particularly in the semiconductor sector, has contributed to the favorable conditions for the currency. July's current account recorded a surplus of around 42 billion dollars, marking the second-largest in history. Analysts attribute this to the expectation that the US Federal Reserve may freeze its benchmark interest rate.

Joo Won, head of the Economic Research Division at Hyundai Research Institute, believes that if South Korea's economic growth rate rises due to semiconductor exports, the value of the won will also increase. Some securities firms have even released forecasts predicting a further decline in the exchange rate to the early 1,300-won range.