Korean President Calls Economic Conditions “Severe” as Won Continues to Drop Against the Dollar
Economic conditions in Korea may not be good, but it good for U.S. troops stationed there that are getting a great exchange rate against the won:
![Electronic display boards at Hana Bank in central Seoul show Tuesday markets. [NEWS1]](https://i0.wp.com/koreajoongangdaily.joins.com/data/photo/2022/08/23/7109d989-52d4-4cb0-94aa-7fdc55f0bbfa.jpg?w=640&ssl=1)
Current economic conditions are “severe,” the presidential office said Tuesday, as the Finance Ministry warned speculators not to pile into the won trade, with the currency now at levels not seen in more than 13 years.
“Internal and external economic conditions, like the weak won and the growing trade deficit, are severe,” presidential spokesperson Kim Eun-hye said on Tuesday.
Earlier that day, President Yoon Suk-yeol said he will address the economic risks in an emergency meeting and make sure the falling won “does not impose negative impacts on our market.”The won broke 1,340 to the dollar for the first time in 13 years and four months on Monday. It continued to fall Tuesday, hitting 1,346.60 won intraday. The currency has declined more than 10 percent this year.
Joong Ang Ilbo
A declining won puts Korea in a tough situation as households are weighed down by debt and being squeezed by inflation. Raising rates would held stabilize the currency but threaten the housing market, while inflation could remain high if rates are increased too slowly.
The brewing economic crisis is as much a test for the president, who is already battling a low approval rating and has few tools at his disposal, as it is for the central bank.
You can read more at the link, but the current economic problems is probably going to only further drop President Yoon’s approval ratings.
I remember being in Yongsan in 2008 when the housing market collapsed and the won shot up to 1500. I took $20,000 from the Community Bank and exchanged it, making a nice profit after it settled back to 1200.
That’s what happens when you become a stooge for Uncle Sam, and wipe his but for him. That’s what happened with the Korean ‘president’. taking orders from Washington to stop trading with China so much, and relocate all the manufacturing inside South Korea, to the United States. The de-industrialization of South Korea has begun by Washington to steal all the jobs and move them to Uncle Sam Land.
The traitors that hold power in the Blue House right now, will be brought to justice one day.
The US dollar needs serious competition. Once the Saudis, Russians, and the Chinese stop using the US dollar for trade, the US dollar will no longer be the only game in town. Sooner the better before these robbers from Uncle Sam who are lining their own country’s pockets at the expense of the rest of the world.