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Over the past six months, the exchange rate between the South Korean Won (KRW) and the Euro (EUR) has exhibited notable fluctuations, reflecting a complex interplay of economic factors and market dynamics. This report delves into the recent trends, underlying causes, and potential future directions of the KRW/EUR exchange rate.

Recent Trends in KRW/EUR Exchange Rate

From January to June 2025, the KRW/EUR exchange rate has experienced significant volatility. On January 23, 2025, the rate peaked at approximately 0.00067001 EUR per KRW. However, by April 25, 2025, it had declined to a low of around 0.00060960 EUR per KRW. The average exchange rate over this period was approximately 0.00064207 EUR per KRW. (exchangerates.org.uk)

Factors Influencing the Exchange Rate

Several key factors have contributed to the observed fluctuations in the KRW/EUR exchange rate:

1. Economic Indicators: South Korea's economic performance, including GDP growth, inflation rates, and trade balances, directly impacts the value of the KRW. Similarly, economic conditions in the Eurozone influence the EUR. Disparities in these indicators between the two regions can lead to exchange rate adjustments.

2. Monetary Policies: Decisions by the Bank of Korea and the European Central Bank regarding interest rates and monetary policies affect investor confidence and capital flows, thereby influencing the exchange rate.

3. Global Market Sentiment: Geopolitical events, trade negotiations, and global economic uncertainties can lead to shifts in investor sentiment, impacting demand for both currencies.

Comparative Analysis with Previous Years

In 2024, the average exchange rate was approximately 0.0006787 EUR per KRW, indicating a stronger KRW compared to the first half of 2025. This suggests a depreciation of the KRW against the EUR in recent months. (exchangerates.org.uk)

Potential Future Directions

Predicting future exchange rate movements involves considerable uncertainty. However, several scenarios could unfold:

• Economic Recovery in South Korea: If South Korea experiences robust economic growth and favorable trade balances, the KRW may appreciate against the EUR.

• Eurozone Economic Challenges: Economic difficulties within the Eurozone could lead to a weaker EUR, potentially strengthening the KRW/EUR exchange rate.

• Global Economic Uncertainties: Ongoing global challenges, such as supply chain disruptions or geopolitical tensions, could result in continued volatility in the KRW/EUR exchange rate.

Conclusion

The KRW/EUR exchange rate has shown significant fluctuations over the past six months, influenced by a range of economic indicators, monetary policies, and global market sentiments. While historical data provides context, future movements will depend on evolving economic conditions in both South Korea and the Eurozone, as well as broader global economic trends.