The South Korean won is the official currency of South Korea, denoted by the symbol "₩". It is managed and issued by the Bank of Korea, the country's central bank. The won is further subdivided into 100 jeon, although the jeon is no longer used in everyday transactions.
As legal tender, the South Korean won serves as the medium of exchange within the country's economy. It is widely accepted for various purposes including trade, investment, and commerce within South Korea. The currency is used not only by individuals for their day-to-day transactions but also by domestic businesses, financial institutions, and government agencies.
To ensure the smooth functioning of the economy and monetary system, the Bank of Korea regulates and controls the supply of South Korean won. This involves conducting monetary policies and interventions to maintain price stability and economic growth. The central bank also aims to prevent sharp fluctuations in the exchange rates between the won and other currencies, promoting stability and predictability.
The value of the South Korean won can fluctuate relative to other currencies due to various factors such as international trade, market forces, and economic conditions. Exchange rates between the won and major currencies, such as the United States dollar, are frequently referenced to determine the relative value of the won in global markets.
Overall, the South Korean won plays a vital role in facilitating economic transactions, investment, and financial activities within South Korea, serving as a crucial unit of account and store of value for its citizens and businesses.
