KRW (₩)
South Korean won
Current regime
KRW is a restricted currency, which implies an inherent limitation to the tradability of this currency. Fund transfers in this currency are not allowed outside of South Korea. Market participants seeking to control exposure to KRW typically use derivative contracts.
Complex payment processing.
The market price is primarily determined without central bank intervention.
History
The KRW was originally introduced by the empire of Korea in 1902, replacing the yang at a rate of 1 won = 5 yang. This was after joining the gold standard on 22 May 1901.
The won was replaced by the yen throughout the Japanese colonial era from 1910-1945 before returning to use after WWII ended.
Hyperinflation partly caused by the Korean war led to the won being replaced by the hwan on 15 February 1953 at a rate of 1 hwan = 100 won.
The won was reintroduced on 10 June 1962 at a rate of 1 won = 10 hwan and was initially pegged to the USD at 125won = 1USD before many subsequent devaluations led to the won trading around 900 before the Asian financial crises. The won became the sole legal tender on 22 March1975 with the withdrawal of the last circulating hwan coins.
The KRW was floated on 24 December 1997 after agreement with the IMF during the Asian financial crisis.
The KRW accounted for 2% of global FX turnover in April 2019.
