Travellers to South Korea can now enjoy a favourable exchange rate between the Singapore dollar and the South Korean won. The won has reached a historic low against the Singapore dollar, following the recent electoral defeat of the ruling party in South Korea.
As of April 12, the exchange rate stood at S$1 to ₩1016, which is the same as the previous low recorded in late October 2022. This is a significant decrease from the exchange rate at the start of January 2024, which was S$1 to ₩980.
Election
The electoral victory of the liberal Democratic Party (DP) in the parliamentary elections held on April 10 has weakened the position of conservative President Yoon Suk Yeol, who is currently two years into his five-year term. The Prime Minister of South Korea, Han Duck Soo, has offered to resign, as have the leader of the PPP and other presidential aides.
This defeat has made it more challenging for President Yoon to pass legislation that his opponents disagree with, which may hinder the government’s policy agenda, including anticipated measures for tax relief and regulatory easing. Share prices of companies previously expected to benefit from upcoming government initiatives have declined following the elections.
Despite these challenges, investors predict that the impact of the setback for Yoon’s party in parliamentary elections will be short-lived, as South Korean stocks made a recovery on April 10 after experiencing a decline due to market jitters over the vote. Some analysts believe that election-related uncertainties will fade soon, and others predict that the government initiatives to fix Korea’s company valuations may see continuity due to bipartisan support.
In summary, the weaker won offers an advantage for travelers seeking to visit South Korea, as their money will go further. However, the political situation in South Korea remains uncertain, and it remains to be seen how this will impact the economy in the long term.