About the South Korean Won
The South Korean won is the currency of South Korea, issued by the Bank of Korea. It has floated freely since December 1997, during the Asian financial crisis.
Korea's economy is built on exports of semiconductors, cars, ships and electronics, so the won moves with global trade and the tech cycle. It is not freely traded offshore, and most offshore hedging uses non-deliverable forwards. Korea has extended onshore trading hours to overlap with Europe and the US, and registered foreign institutions can now trade the won directly onshore.
The Bank of Korea targets 2% inflation and its Monetary Policy Board makes eight interest rate decisions a year.
Paying in KRW
- Account details
- Korea does not use IBANs. A won payment needs the account number, the account holder's name exactly as the bank holds it, and the bank's SWIFT/BIC code.
- Purpose and documents
- Under Korea's Foreign Exchange Transactions Act, banks ask for the reason for international payments and may ask for documents for larger amounts. Include a clear payment description.
- Domestic clearing
- Transfers between Korean banks usually arrive in real time, through the interbank network run by the Korea Financial Telecommunications and Clearings Institute.
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