Forum turned upside down?

[PeaceBlondie]

Koreans complain they came here one to four years ago to put their children into good, cheap international schools, but the won has really taken a beating. The last six weeks have been brutal. Is it related to the yen or the dollar, or to international trade, or what?

I cannot post Yahoo Financial chart here, but it shows that in 18 months, the baht has gained 21% against the won, and twice in March 08, the baht was 28% stronger.

[sonicdragon]

South Korea is conspicuous in that it has been running a large current account deficit (at the highest level since the asian crisis of 98), in part due to heavy reliance on imported commodities. That's the fundamental reason.

Edited March 29, 2008 by sonicdragon

[Wrong Turn]

South Korea is conspicuous in that it has been running a large current account deficit (at the highest level since the asian crisis of 98), in part due to heavy reliance on imported commodities. That's the fundamental reason.

The South Korean Won apparently has been strengthening against the dollar (I haven't checked in a couple of months) and Americans paid in Won claim they're getting a pay raise, basically when they wire money home.

As for the Baht : Won ratio

It seems the Baht is stable, a bit.

[sonicdragon]

South Korea is conspicuous in that it has been running a large current account deficit (at the highest level since the asian crisis of 98), in part due to heavy reliance on imported commodities. That's the fundamental reason.

The South Korean Won apparently has been strengthening against the dollar (I haven't checked in a couple of months) and Americans paid in Won claim they're getting a pay raise, basically when they wire money home.

As for the Baht : Won ratio

It seems the Baht is stable, a bit.

The KRW was one of the best performing asian currencies against the USD over the last few years. But recently it took a beating, for the fundamental reason I stated above. Korea has a big foreign participation rate in its stock market. Due to expectations of a fall in the KRW because of the current account deficit, this caused some capital flight, adding further downward pressure on the currency. Since the THB has been strong against the USD, this has magnified the effect for Koreans in Thailand.

Edited March 29, 2008 by sonicdragon

[PeaceBlondie]

Well, I see the dollar has spiked in March 2008, but I think it is in the opposite direction for Americans wiring home money from Seoul. The dollar was worth 1,111 won twice in March. That would mean an American on a steady income would send home less in March.

[sonicdragon]

I thought you were talking about Koreans in Thailand ?

The situation for Americans in Korea is indeed quite different.

[PeaceBlondie]

SonicDragon, I was talking about Koreans in Thailand, but this thread took a Wrong Turn to Seoul.

I have just emailed a friend who has a lot of Korean clients in Thailand, and she is going to reduce her rates for consultation services about 9%. She said something about the yield on the price curve.

[sonicdragon]

SonicDragon, I was talking about Koreans in Thailand, but this thread took a Wrong Turn to Seoul.

I have just emailed a friend who has a lot of Korean clients in Thailand, and she is going to reduce her rates for consultation services about 9%. She said something about the yield on the price curve.

"the yield on the price curve" ? You may have mis-heard her.

[briley]

To keep moving the thread from the actual topic, I don't think Won holds need worry, not like GBP (£) holders.

The change in 3 months is from 71 to the pound in early December to 62 to the pound in March, a drop of nearly 15%.

Will you friend reduce prices for starving Brits?

[PeaceBlondie]

I think my friend was saying that if she keeps her current prices so high, she has accidentally priced herself out of the market, and her gross earnings will fall. If she lowers prices, she will get more customers, and more total earnings. She is not an economy major. She has no starving Brits or Americans for clients.