Exchange Rate Calculator

The exchange rate between the British Pound (GBP) and the South Korean Won (KRW) has experienced notable fluctuations over the past few months. This report provides an analysis of the GBP/KRW exchange rate trends, examining the factors influencing these movements and offering insights into potential future developments.

Recent Exchange Rate Trends

As of June 3, 2025, the GBP/KRW exchange rate stands at approximately 1 GBP to 1,903.09 KRW. (gbp.currencyrate.today) Over the past year, the exchange rate has seen significant variation, with a low of 1,687.40 KRW per GBP recorded a year ago and a high of 1,904.4 KRW per GBP on March 21, 2025. (poundsterlinglive.com)

In the first quarter of 2025, the exchange rate exhibited an upward trend. Starting at 1,768.76 KRW per GBP on January 22, 2025, it climbed to 1,882.94 KRW per GBP by March 13, 2025. (exchange-rates.org) This represents an increase of approximately 6.5% over this period.

Factors Influencing the Exchange Rate

Several factors have contributed to the fluctuations in the GBP/KRW exchange rate:

1. Economic Indicators: The economic performance of both the United Kingdom and South Korea plays a crucial role. Indicators such as GDP growth, inflation rates, and employment figures can influence investor confidence and currency valuations.

2. Monetary Policies: Decisions by the Bank of England and the Bank of Korea regarding interest rates and monetary policies impact the attractiveness of their respective currencies. For instance, an interest rate hike by the Bank of England could strengthen the GBP as investors seek higher returns.

3. Trade Balances: The trade relationship between the UK and South Korea affects currency demand. A trade surplus in the UK could lead to increased demand for GBP, appreciating its value against the KRW.

4. Global Economic Events: Events such as geopolitical tensions, global financial crises, or pandemics can lead to market volatility, influencing exchange rates.

Comparative Analysis with Previous Years

Comparing the current exchange rate to previous years provides context for its recent performance. In 2024, the GBP/KRW exchange rate ranged from a low of 1,647.95 KRW per GBP on January 1 to a high of 1,852.71 KRW per GBP on December 27. (exchange-rates.org) The average exchange rate for 2024 was approximately 1,742.06 KRW per GBP.

The upward trend observed in 2025 indicates a strengthening of the GBP against the KRW compared to the previous year. This could be attributed to stronger economic performance in the UK, favorable trade balances, or differing monetary policies between the two countries.

Future Outlook

Predicting future exchange rate movements involves considering various economic indicators and potential global events. If the UK continues to exhibit strong economic growth and the Bank of England maintains or increases interest rates, the GBP may continue to strengthen against the KRW. Conversely, if South Korea's economy outperforms expectations or if global economic conditions favor emerging markets, the KRW could appreciate against the GBP.

Investors and businesses engaged in GBP/KRW transactions should monitor:

• Economic Reports: Regular updates on GDP growth, inflation, and employment figures from both countries.

• Central Bank Announcements: Statements and policy decisions from the Bank of England and the Bank of Korea.

• Global Economic Events: Developments such as trade negotiations, geopolitical tensions, and global financial market trends.

Conclusion

The GBP/KRW exchange rate has shown significant fluctuations over the past year, with a general strengthening of the GBP against the KRW in 2025. Various factors, including economic indicators, monetary policies, trade balances, and global events, have influenced these movements. Staying informed about these factors is essential for making well-informed decisions regarding GBP/KRW transactions.