South Korean Won

The South Korean won (KRW) is the official currency of South Korea. The won is subdivided into 100 jeon, and is issued by the Bank of Korea. The old won was subdivided into 100 jeon, with the won notes dated 1959 or earlier having denominations of ₩5, ₩10, ₩50, ₩100, and ₩500. Since the won was revalued in 1962, a new series of won notes was introduced, with denominations of ₩1, ₩5, ₩10, ₩50, and ₩100. The won was revalued again in 1980, with the new won notes having denominations of ₩1, ₩5, ₩10, ₩50, and ₩100. The won is often informally referred to as the "hwan" by foreign exchange dealers and investors. The won was introduced in 1902, replacing the earlier yang. At this time, the won was pegged to the Japanese yen at a rate of 1 won = 1 yen. In 1910, the won was again pegged to the yen, this time at a rate of 1 won = 5 yen. In 1925, the won was once again pegged to the yen, this time at a rate of 1 won = 50 yen. The won was finally unpegged from the yen in 1945, and floated against the U.S. dollar at a rate of 1 won = $0.50. The won was pegged to the dollar again in 1962 at a rate of 1 won = $0.35. In 1971, the won was unpegged from the dollar, and floated against a basket of currencies. The won was pegged to the dollar again in 1973 at a rate of 1 won = $0.50. In 1980, the won was unpegged from the dollar, and floated against a basket of currencies. The won was pegged to the dollar again in 1987 at a rate of 1 won = $0.70. The won was unpegged from the dollar in 1997, and floated against a basket of currencies. The won has been relatively stable against the U.S. dollar since the early 2000s. The won's value against the dollar peaked in late 2008 at around ₩1300/USD, but fell to around ₩1150/USD by early 2009 as the global financial crisis caused the dollar to strengthen against most currencies. The won has since recovered to its pre-crisis levels, and as of May 2017 was trading at around ₩1130/USD. The South Korean won is one of the most traded currencies in the world, and is also one of the world's most undervalued currencies. The won is often seen as a safe haven currency, and is used by many investors to hedge against global economic uncertainty. The won is also used by many investors as a way to diversify their portfolios.