Office worker Kim, 30, has recently been exchanging yen at 100,000 won a day. Kim said, "I'm buying a little every day, thinking that averaging down in yen is better than averaging down in stocks (buying more on a decline to lower the average purchase price). There's exchange gain, but I'm also doing it to get money cheaply that I'll use later when I travel to Japan."
As the yen fell to the 850-won range per 100 yen, some people began doing so-called "yen-tech" ("yen" + "jaetech," or financial strategies), buying a fixed amount of yen every day. They expect the yen to strengthen if Japan raises interest rates.
On the morning of the 1st, the yen stood at 857 won per 100 yen. That is the lowest level since July 10, 2024, when it hit 856 won. In line with the interest rate hikes in Korea and the United States, there is speculation that Japan will raise rates in September. Generally, when interest rates rise, a currency's value increases.
The yen, which was in the 1,000-won range per 100 yen early last year, was still in the 970-won range in early June this year but has been falling steadily since. Japan's active fiscal stance is fueling yen weakness, while the won has instead strengthened on the back of rate hikes and active conversions by exporters such as Samsung Electronics(005930), SK hynix(000660).
During the period of a falling won-yen exchange rate, the amount of yen exchanged jumped. From July to Aug. 25, customers exchanged 51.9 billion yen (about 444.5 billion won) at the four major banks (KB Kookmin, Shinhan, Hana, Woori), up 36% from July–August last year (38.1 billion yen).
Using a foreign currency account, you can exchange in real time on a smartphone and the exchange fee is waived. You can exchange up to 2 million won per day, and if you get a foreign currency debit card, you can make payments and withdraw cash in Japan without fees.
However, if you are aiming for exchange gains, you need to factor in the cost of converting back. When you convert yen held in a foreign currency account back into won, you incur a combined 1.5–2% cost, including a 1% bid-ask spread and a 0.5–1% reconversion fee.
A financial industry official said, "A few years ago, 1,000 won per 100 yen was typical, so the mid-800 won rate seems to feel cheap."