Major Currencies Questions Medium
The history of the South Korean won dates back to 1902 when the Korean yen was introduced as the official currency during the Japanese colonial rule. However, after Korea's liberation from Japan in 1945, the Korean won was established as the new currency.
Initially, the South Korean won was pegged to the US dollar at a rate of 15 won to 1 dollar. This fixed exchange rate system helped stabilize the economy and promote international trade. However, due to various economic and political factors, the exchange rate was adjusted several times over the years.
In the 1960s, South Korea experienced rapid industrialization and economic growth under the leadership of President Park Chung-hee. During this period, the government implemented strict currency controls and maintained a relatively undervalued won to boost exports and attract foreign investment.
In the 1990s, South Korea faced a severe financial crisis, known as the Asian Financial Crisis, which led to a sharp depreciation of the won. The government was forced to seek assistance from the International Monetary Fund (IMF) to stabilize the economy and restore investor confidence.
Since then, the South Korean won has gradually strengthened against major currencies, reflecting the country's economic development and increased global presence. Today, the Bank of Korea manages the exchange rate through a managed float system, allowing market forces to influence the value of the won within a certain range.
Overall, the history of the South Korean won is intertwined with the country's economic and political developments, reflecting its journey from a war-torn nation to one of the world's leading economies.