Exchange Rate Calculator

The exchange rate between the South Korean Won (KRW) and the Taiwan Dollar (TWD) has experienced notable fluctuations over the past few months. Understanding these movements requires an examination of recent trends, underlying economic factors, and potential future implications.

Recent Exchange Rate Trends

In the first half of 2025, the KRW/TWD exchange rate exhibited a downward trend. The rate peaked at 0.0229 TWD per KRW on February 25, 2025, and reached its lowest point at 0.0212 TWD per KRW on May 5, 2025. The average exchange rate during this period was approximately 0.0223 TWD per KRW. Overall, the KRW depreciated by about 3.87% against the TWD over these six months. (valutafx.com)

Factors Influencing the Exchange Rate

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

• Economic Indicators: Differences in GDP growth rates, inflation levels, and interest rates between South Korea and Taiwan can influence currency valuations. For instance, if Taiwan's economy grows at a faster pace than South Korea's, the TWD may strengthen relative to the KRW.

• Trade Balances: The trade relationship between the two countries affects currency demand. A trade surplus in Taiwan could lead to increased demand for TWD, appreciating its value against the KRW.

• Monetary Policies: Decisions by the central banks of South Korea and Taiwan regarding interest rates and money supply can impact investor confidence and currency strength.

• Global Economic Conditions: External factors such as global market trends, geopolitical events, and changes in commodity prices can also play a role in currency fluctuations.

Historical Context

To provide a broader perspective, it's useful to compare the recent exchange rate trends with historical data. In 2021, the KRW/TWD exchange rate was higher, with the KRW trading at approximately 0.025 TWD. This indicates a gradual depreciation of the KRW against the TWD over the past few years. (exchangerates.org.uk)

Implications and Outlook

The depreciation of the KRW against the TWD has several implications:

• Trade Competitiveness: A weaker KRW can make South Korean exports more competitive in international markets, potentially boosting export volumes.

• Import Costs: Conversely, a weaker KRW makes imports more expensive, which could contribute to domestic inflationary pressures in South Korea.

• Investment Flows: Currency fluctuations can influence foreign direct investment and portfolio investment decisions, as investors seek to optimize returns and manage risks associated with exchange rate movements.

Looking ahead, the future trajectory of the KRW/TWD exchange rate will depend on the interplay of the aforementioned factors. Monitoring economic indicators, central bank policies, and global economic developments will be crucial for anticipating further movements in the exchange rate.

In conclusion, the KRW/TWD exchange rate has experienced a downward trend in the first half of 2025, influenced by a combination of economic indicators, trade balances, monetary policies, and global economic conditions. Understanding these factors is essential for businesses, investors, and policymakers engaged in activities involving these currencies.