Exchange Rate Calculator

The exchange rate between the Hong Kong Dollar (HKD) and the South Korean Won (KRW) has exhibited notable fluctuations over the past several months. This report provides an analysis of the HKD/KRW exchange rate trends, key influencing factors, and future projections.

Recent Exchange Rate Trends

As of May 3, 2025, the HKD/KRW exchange rate stands at approximately 187.6 KRW per 1 HKD. Over the past year, the exchange rate has experienced significant volatility. On January 1, 2024, the rate was 165.74 KRW per HKD, reaching a peak of 190.32 KRW on December 31, 2024. This represents an increase of approximately 14.83% over the year.

In 2025, the exchange rate has shown a slight decline. The highest rate recorded was 190.01 KRW per HKD on January 1, 2025, with the lowest at 183.56 KRW on January 24, 2025. The average rate for 2025 thus far is 186.30 KRW per HKD, indicating a decrease of about 1.23% compared to the end of 2024.

Factors Influencing the Exchange Rate

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

• Economic Indicators: Differences in GDP growth rates, inflation, and interest rates between Hong Kong and South Korea can impact the exchange rate. For instance, if South Korea's economy grows faster than Hong Kong's, the KRW may strengthen against the HKD.

• Geopolitical Events: Political stability, trade agreements, and international relations influence investor confidence and currency values. Tensions or agreements between major trading partners can lead to shifts in exchange rates.

• Central Bank Policies: Decisions by the Hong Kong Monetary Authority and the Bank of Korea regarding interest rates and monetary policies directly affect currency valuations. An increase in interest rates in South Korea, for example, could attract foreign investment, strengthening the KRW.

Future Projections

Forecasts suggest a gradual appreciation of the HKD against the KRW in the coming months. By December 2025, the exchange rate is projected to reach approximately 207.52 KRW per HKD, representing a potential return on investment of 13.21% compared to current rates.

Another analysis predicts a long-term increase, with the exchange rate reaching 195.171 KRW per HKD within a year and 229.050 KRW per HKD over five years, indicating a 22.6% increase.

Conclusion

The HKD/KRW exchange rate has experienced significant fluctuations over the past year, influenced by economic indicators, geopolitical events, and central bank policies. While recent trends show a slight decline in the HKD's value against the KRW, future projections indicate potential appreciation. Investors and businesses engaged in transactions between Hong Kong and South Korea should monitor these factors closely to make informed decisions.