The South Korean won is now weaker against the U.S. dollar. In June, the average rate was 1,527.95. This is the lowest level since February 1998. On June 30, the won reached a low of 1,555 won per dollar. This happens because the real effective exchange rate fell to 82.99 in June. This was the lowest rate since March 2009, when it was 79.31.
A weaker currency can make imports more expensive for people in the country. However, it can also make Korean products cheaper for people in other countries to buy.
In July, South Korean pension funds became net buyers of local stocks for the first time this year. During the first 24 days of July, the National Pension Service (NPS) and other funds bought 68.4 billion won of shares on the KOSPI. They bought 425.8 billion won of SK hynix shares. Earlier this year, the KOSPI rose from 4,300 points to over 9,000 points in mid-June. Now, it is around 7,000 points. Because of this, the NPS is being very careful with its money.
The travel sector is also doing better. In May, there was a surplus of $220.5 million. This is good because the sector had deficits for 72 months starting in March 2020. In May, 1.95 million foreign visitors came to South Korea. This is 19.4% more than last year. Each visitor spent $1,324. Meanwhile, the number of South Koreans traveling abroad fell by 2.1% to 2.34 million people. Each traveler spent $1,007 overseas.