"Travelers Flock to Currency Exchange Offices Amid Soaring Exchange Rate: 'Feels Like Traveling with a Discount'"

[Financial News]"Foreign tourists exchanging dollars for won are making small gains, and locals who started collecting dollars when the rate was between 1,200 and 1,300 won are also profiting. There are far more individual investors than you might think. Since Myeong-dong currency exchange offices offer at least 5 won more per dollar, coming here is always advantageous," said an operator.On the 20th, when the US Dollar–South Korean Won exchange rate surpassed 1,470 won during trading hours, an operator of a currency exchange office in Myeong-dong, Jung-gu, Seoul pointed to an investment information website and made this statement. Around 1 p.m., nearby currency exchange offices were buying dollars at rates between 1,468 and 1,475 won. According to the operator, as the high exchange rate becomes the 'new normal,' both locals and foreigners visiting Myeong-dong currency exchange offices are increasing.
According to the Seoul foreign exchange market on the 24th, the US Dollar–South Korean Won exchange rate closed at 1,475.6 won on the 21st, up 7.7 won from the previous day. This is the highest level in about seven months since April 9, when Donald John Trump, then President of the United States of America (USA), announced his reciprocal tariff policy, and the rate hit 1,472 won.

Currency exchange offices near Myeong-dong Station have noticed an increase in demand from foreign tourists, coinciding with the strong dollar. On this day, long lines formed in front of the offices, and staff were busy handling a wide range of exchange requests, from small to large amounts. In some shops, the proportion of foreign customers was noticeably higher than usual.
According to the Korea Tourism Organization (KTO), in the third quarter of this year, the number of foreign tourists visiting Korea reached 5.26 million, an 18.5% increase compared to the same period last year (4.44 million). This surpassed the previous record of 4.5 million in the third quarter of 2019, setting a new all-time high. However, the increase in foreign visitors may be due to various factors, such as the recovery of flight services and improved travel sentiment, so it is difficult to attribute the rise solely to the strong dollar.
Nevertheless, foreign tourists near the currency exchange offices around Myeong-dong Station expressed excitement about the 'attractive exchange rate' and said it 'feels like traveling with a discount.' Betty, a 35-year-old tourist from the USA, commented, "I exchanged $500 twice, and the Myeong-dong currency exchange office was definitely better than the airport. If I could have paid by card, I would have exchanged even more."
Meanwhile, more locals are seeking foreign exchange gains. An employee at a currency exchange office said, "There is a constant stream of Korean customers selling dollars. The ratio of foreign to Korean customers is about 7 to 3, and even as the number of foreign customers increases, that ratio remains steady."
Most currency exchange operators predict that the strong dollar will persist. Typically, a rise in the Korea Composite Stock Price Index (KOSPI) is accompanied by foreign buying and a stronger won, but recently this correlation has not held. As of the end of October, the KOSPI had risen more than 68% this year, ranking first in growth among global markets, while the exchange rate reached its highest level in 16 years since the 2009 global financial crisis. This decoupling between stock prices and the exchange rate is notable. A representative from a currency exchange office stated, "Unless expectations for a US interest rate cut increase significantly, the exchange rate is likely to rise further."
Experts also forecast that the US Dollar–South Korean Won exchange rate will remain in the 1,400-won range for some time. Cho Yong Gu, a research fellow at SHINYOUNG SECURITIES, explained, "Structurally, demand for foreign currency is increasing. The high exchange rate trend is likely to continue at least through the first half of next year."
[email protected] Seo Ji-yoon Reporter