If you’ve checked the Korean won to yen exchange rate this week, you probably noticed things feel a bit... stuck. Or maybe erratic is the better word. As of mid-January 2026, we’re looking at a rate hovering right around 10.78 yen for every 100 won. It’s a weird spot to be in. For a long time, travelers and investors got used to the "10-to-1" rule of thumb, but that's been thrown out the window by a cocktail of central bank drama and global shifts.
Honestly, the "cheap Japan" era that everyone loved in 2024 and 2025 is starting to face some serious friction.
What's actually driving the Korean won to yen rate right now?
It isn't just one thing. It's never just one thing. But if we have to point fingers, the Bank of Korea (BOK) is the main character in this story. Just a few days ago, on January 15, 2026, Governor Rhee Chang-yong and his team basically told the world they're done cutting interest rates for now. They held the base rate at 2.50%.
Why? Because the won has been getting kicked around. It’s been one of the weakest currencies in Asia lately, and the BOK is tired of watching it slide.
When a central bank stops cutting rates, the currency usually gets a bit of a spine. But here’s the kicker: the Japanese yen is also trying to find its footing. We're seeing a weird tug-of-war where both currencies are struggling against a monster US dollar, which makes the cross-rate between the won and yen look like two tired marathon runners trying to outpace each other.
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The real-world cost
If you’re planning a trip to Osaka or Tokyo from Seoul, here is what that looks like in your wallet:
- 1,000 KRW gets you about 107.77 JPY.
- 10,000 KRW (a typical cheap lunch) is roughly 1,077 JPY.
- 100,000 KRW converts to approximately 10,770 JPY.
It’s not the "steal" it was a year ago, but it’s also not a disaster. You're still getting more than 10 yen for every 100 won, which is the psychological "fair value" many people use to justify a shopping spree at Don Quijote.
Why most people get the KRW/JPY forecast wrong
Most amateur analysts look at the charts and think "Oh, the won is weak, so the yen must be strong." That’s a trap. Right now, both currencies are actually highly correlated because they’re both "funding currencies" or victims of the same macro pressures.
Governor Rhee actually pointed something out that most people ignore. He mentioned that about three-quarters of the won's recent volatility is due to external factors—like the yen itself being weak and geopolitical messiness in the Middle East. Only about 25% is actually "Korea's fault."
The Japan Factor
Over in Tokyo, the Bank of Japan (BoJ) is playing a very different game. While Korea is pausing its rate-cutting cycle, Japan is slowly—painfully slowly—talking about raising rates later in 2026.
When Japan eventually hikes, the Korean won to yen rate could drop significantly. If the won stays at 2.50% and Japan moves from near-zero toward 1%, the "yield gap" closes. That makes the yen more attractive and the won less so.
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We’re essentially in the "eye of the storm" right now. It's a period of relative stability before the BoJ likely makes a move in the second half of the year.
Practical tips for exchanging money in 2026
If you're holding won and need yen, don't just walk into a bank at Incheon Airport. That’s the fastest way to lose 5-7% of your money to "convenience fees" and terrible spreads.
- Digital Wallets are King: Use apps like GLN or Toss. They often use the mid-market rate which is much closer to the 10.78 figure you see on Google.
- The "Travel Log" Method: Cards like Hana Bank’s TravelLog or WOWPASS allow you to exchange won into yen when the rate is favorable and hold it in a digital envelope. If you see the rate spike to 10.90, lock it in.
- Avoid Cash if Possible: Japan is way more "cashless" than it was five years ago. You can use your Korean credit cards or Apple Pay in most places, and the exchange rate used by Visa/Mastercard is usually better than a physical booth.
The "K-Shaped" Recovery Problem
There's a reason the BOK is hesitant to do anything too drastic. While the semiconductor industry in Korea is booming (thanks, AI), the rest of the domestic economy is a bit of a slog.
This creates a dilemma. If they raise rates to protect the won (and keep your yen-shopping cheap), they might crush small businesses in Korea who are already struggling with debt. It's a delicate balancing act. Experts from ING and MUFG are currently watching the "negative output gap" in Korea, which basically means the economy is producing less than it's capable of.
Actionable steps for your wallet
The Korean won to yen rate is likely to stay in the 10.60 to 10.90 range for the next few months. It's unlikely we'll see it jump back to 11.00+ unless the US Federal Reserve starts aggressively cutting rates, which isn't on the immediate horizon.
If you are a traveler: Exchange about 30% of your budget now to hedge your bets. If the yen strengthens, you'll be glad you did. If it weakens further, you can buy the rest later.
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If you are an investor: Watch the Bank of Japan's June meeting. That is the "pivot point" for the year. If they signal a rate hike, the won-to-yen rate will likely fall toward 10.40 or 10.20, making Japanese assets more expensive for Koreans.
Keep an eye on the 1,450-1,470 level for the Won against the US Dollar. Usually, when the Won struggles against the Greenback, it ends up losing ground against the Yen too, even if Japan isn't doing much. The two currencies are linked at the hip in the eyes of global traders.
Stick to digital exchange platforms and avoid the FOMO of "buying the dip" too early. The current stability is a gift—use it to plan your budget without the stress of 2024's wild swings.