The reference won rate set by Korea's foreign exchange rules
The base rate is the reference exchange rate defined in Korea's Foreign Exchange Transaction Regulation and published daily by Seoul Money Brokerage Services. For the US dollar it is the market average rate: deals through the brokers between 9:00 and 15:30 on the previous trading day, weighted by volume. Currencies other than the dollar and the yuan use an arbitraged base rate worked out through their dollar rates. From January 2027 the dollar base rate switches to a time-weighted average taken at 4 p.m.
If $100 million trades at 1,400 won and $300 million at 1,404, the average is (1,400 × 1 + 1,404 × 3) ÷ 4 = 1,403 won.
For learning, not investment advice. Decisions are your own.
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