A worker at Hana Bank’s counterfeit currency response center in Seoul stacks bills from Japan and the US on June 27, 2024. (Yonhap)
The weakening Japanese yen raises concerns about its impact on the South Korean economy. The competition between Korean and Japanese exporters may be affected, potentially harming Korea’s trade surplus. Analysis shows a high export similarity index between Korea and Japan in key sectors like petrochemicals, automobiles, ships, and machinery.
A report indicates that a depreciation of the yen can lead to a decrease in Korea’s export value. The exchange rate between the won and yen is closely monitored, with experts warning of potential negative effects on Korea’s competitiveness in the global market.
Tourism deficit with Japan is on the rise, affecting South Korea’s current account surplus. Concerns about a coupling effect between the weakening yen and the won prompt strategies like proxy hedging. Experts emphasize the need for vigilance to protect Korea’s financial stability amidst these challenges.
By Kim Hoe-seung, senior staff writer
Contact: [english@hani.co.kr]