Korean Won (KRW)

What Is the Korean Won (KRW)?

The Korean won (KRW) is the national currency of South Korea. Its users denote the won by utilizing the symbol "\u20a9," as in "\u20a91,000." Since 1950, it has been administered by the country's central bank, the Bank of Korea. The won is completely convertible and is regularly traded against other global currencies, like the U.S. dollar ([USD](/usd-US dollar)), the Japanese yen (JPY), and the euro (EUR). One won is partitioned into 100 subunits, called "jeon."

As of February 2021, 1 U.S. dollar is equivalent to roughly 1,098 KRW.

Figuring out the Korean Won

The Korean won has been utilized in some form for millennia. During the control of Korea by Japan, which traversed from 1910 to 1945, the won was momentarily supplanted with a Japanese provincial currency called the Korean yen.

After World War II, in any case, the division of North Korea and South Korea brought about two separate currencies, each called the Korean won. Initially pegged to the USD at a rate of 15 won to 1 dollar, a number of devaluations happened from there on due largely to the effects of the Korean War on the country's economy.

In 1950, the Bank of Korea started operations as South Korea's new central bank. It assumed the duties of the previous monetary authority, the Bank of Joseon, with exclusive authority to issue banknotes and coins for the country. Today, the Bank of Korea issues banknotes in divisions going from 1,000 to 50,000 won. The notes feature early Yi, or Chos\u014fn, dynasty figures, including essayists Yi Hwang, featured on the 1,000-won note; Yi I, featured on the 5,000-won note; and King Sejong, who shows up on the 10,000-won note.

During the 1980s, South Korea looked to extend the significance of its currency to international trade by supplanting its dollar peg with a basket of currencies. Further changes were made in the late 1990s, when the government answered the Asian Financial Crisis by permitting the won to float uninhibitedly on foreign exchange markets.

The Won and Korea's Economy Today

Today, South Korea's economy is one of the largest in Asia and a major force in international commerce. In the same way as other advanced economies, it has a large service sector, containing around 56% of annual gross domestic product (GDP). South Korea is additionally known for its advanced manufacturing sector, which creates high-value products like semiconductors and vehicles. In like manner, industry is a huge part of South Korean GDP, contributing around 33% of the total.

The value of the won has been very stable over the course of the last decade. In February 2011, 1 USD was equivalent to 1,117 won. As of February 2021, the equivalent figure is practically something very similar: 1,098 won for every USD.

Inflation in South Korea has declined throughout this equivalent time span, from 4% in 2008 down to .5% in 2020. In the interim, the country's economy has developed at a compound annual growth rate (CAGR) of around 4% each year. In particular, per-capita GDP, estimated in light of purchasing power parity (PPP), has developed from (in steady international $) $29,644 in 2009 to $43,143 in 2019.

Features

• Today, the won is a stable and broadly traded currency, upheld by a large and exceptionally advanced South Korean economy.
• The won was supplanted and modified at several points over the course of the last century, to cope with debasements and the effects of war.
• The Korean won (KRW) is the national currency of the Republic of South Korea.