Exchange Rate Calculator

The exchange rate between the South Korean Won (KRW) and the Japanese Yen (JPY) is a critical indicator of the economic relationship between South Korea and Japan. This report provides an analysis of the KRW/JPY exchange rate over the past few months, examining historical trends, recent fluctuations, and future projections.

Historical Trends

Over the past few years, the KRW/JPY exchange rate has exhibited notable fluctuations. In 2024, the average annual exchange rate was approximately 0.090036 JPY per 1 KRW, a decrease from 0.093124 JPY in 2023. (statista.com) This downward trend indicates a relative weakening of the KRW against the JPY during that period.

Recent Fluctuations

In the first half of 2025, the KRW/JPY exchange rate experienced significant volatility. The highest rate was recorded on January 24, 2025, at 0.1091 JPY per 1 KRW, while the lowest was on April 8, 2025, at 0.0982 JPY per 1 KRW. (exchange-rates.org) The average exchange rate during this period was approximately 0.1042 JPY per 1 KRW. (exchangerates.org.uk)

Factors Influencing the Exchange Rate

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

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

• Geopolitical Events: Political developments, trade agreements, and regional tensions can influence investor confidence and currency values.

• Central Bank Policies: Decisions by the Bank of Korea and the Bank of Japan regarding interest rates and monetary policies can affect the exchange rate. For example, if the Bank of Korea raises interest rates while the Bank of Japan maintains low rates, the KRW may appreciate against the JPY.

Future Projections

Looking ahead, various forecasts provide insights into the potential trajectory of the KRW/JPY exchange rate:

• Short-Term Forecasts: For July 2025, the exchange rate is projected to average around 0.1063 JPY per 1 KRW, with a trading range between 0.1058 and 0.1069 JPY. (midforex.com)

• Long-Term Forecasts: By the end of 2025, the exchange rate is estimated to average 0.1064 JPY per 1 KRW. Looking further ahead, the average rate is projected to reach 0.1140 JPY by 2030 and 0.1209 JPY by 2035. (midforex.com)

It's important to note that long-term forecasts are subject to greater uncertainty due to potential unforeseen economic and geopolitical developments.

Conclusion

The KRW/JPY exchange rate has shown considerable variability over the past few months, influenced by a range of economic indicators, geopolitical events, and central bank policies. While short-term forecasts suggest relative stability, long-term projections indicate a gradual appreciation of the KRW against the JPY. Stakeholders should monitor these factors closely to make informed decisions regarding currency-related transactions and investments.