Ever looked at your bank app and wondered why your money feels like it’s shrinking? If you’re tracking the South Korean won to Canadian dollar exchange right now, you’ve likely noticed things are getting a bit weird. It isn’t just your imagination.
Money is moving.
Honestly, the KRW has been taking a bit of a beating lately. As of mid-January 2026, the rate is hovering around the 0.00094 mark. That basically means for every 1,000 won you have, you’re looking at about 94 cents CAD. If you remember the days when 1,000 won was closer to a full Canadian dollar, those times feel like a lifetime ago.
Why the South Korean won to Canadian dollar rate is acting up
Central banks are the real puppet masters here. Yesterday, January 15, the Bank of Korea (BOK) decided to keep its benchmark interest rate at 2.5%. They’ve been sitting on this for five meetings in a row. Governor Rhee Chang-yong is clearly worried about the won hitting 16-year lows against major currencies. He even scrubbed any mention of future rate cuts from their official statement.
That’s a big deal.
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In the currency world, when a central bank stops talking about cutting rates, it’s usually a desperate attempt to prop up the value of their money. But Korea is stuck. If they raise rates to save the won, they crush their own housing market and make youth unemployment—which is sitting at a rough 6.1%—even worse.
Meanwhile, over in Ottawa, the Bank of Canada (BoC) is playing a different game. They’ve parked their rate at 2.25%. While Korea is struggling with a weak currency, Canada is bracing for trade shifts and "structural adjustments" as the new government under Prime Minister Mark Carney navigates a very messy global trade landscape.
The trade factor you probably missed
You might think the exchange rate is just about interest rates. It's not. It's also about stuff. Actual physical stuff.
Canada and South Korea just hit the 10th anniversary of their Free Trade Agreement (CKFTA). It’s been a massive success, but it creates a weird tug-of-war for the South Korean won to Canadian dollar value.
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- Energy: Canada just sent its first-ever shipment of LNG from the west coast to South Korea in 2025.
- Steel: Just this week, a Canadian trade tribunal dropped a dumping inquiry into South Korean steel strapping.
- Cars: Nearly half of what Canada buys from Korea is vehicles.
When you buy a Hyundai or a Kia in Toronto, you’re essentially helping drive the demand for won, but the sheer volume of Canadian energy exports going the other way is keeping the Canadian dollar surprisingly resilient.
The "Tourist Trap" reality
If you’re planning a trip to Myeong-dong or heading to Vancouver for school, the math has changed. Last year, 15,000 South Korean students were enrolled in Canadian schools. For their parents, the current rate is a headache.
"It's not just the sticker price anymore," says one international education consultant in Seoul. "It's the fact that every tuition payment feels 5% more expensive than it did six months ago because of the currency slide."
Actually, let's look at the numbers. In early 2025, the rate was closer to 0.00097. By December, it dipped to 0.00093. It's recovered slightly this month, but the trend line looks like a downhill ski slope.
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How to actually handle your money right now
Don't just walk into a Big Five bank in Canada or a KEB Hana branch in Seoul and swap cash. You’ll get absolutely hosed on the "spread"—that’s the gap between the real market rate and what they charge you.
Banks often bake a 3% to 5% fee into the rate without telling you. For a $10,000 transfer, that’s $500 gone. Poof.
Better ways to move KRW to CAD:
- Specialized Fintechs: Companies like Wise or SentBe (which is huge in Korea) usually give you the mid-market rate.
- Forward Contracts: If you know you have to pay tuition in six months, some platforms let you "lock in" today's rate. It's a gamble, but if the won keeps sliding, you’ll look like a genius.
- Dual Currency Accounts: If you're a digital nomad or a frequent flyer, keeping a balance in both currencies helps you avoid swapping when the rates are trash.
The reality is that the South Korean won to Canadian dollar path is likely to stay volatile through 2026. Korea is projecting a modest 1.8% GDP growth, which is okay, but not "super-currency" level. Canada is dealing with its own productivity issues, but its role as a "safe haven" for energy and minerals keeps the CAD stronger than many expected.
If you’re holding won, keep a very close eye on the Bank of Korea's February 26 meeting. If they show any more "hawkish" signs—meaning they might actually raise rates—you might see a brief window where the won regains some ground against the loonie.
Actionable Next Steps:
- Check the "Mid-Market" rate on a neutral site like Reuters or Bloomberg before you exchange.
- If the rate hits 0.00096 or higher, consider moving a portion of your funds, as the long-term trend suggests the won may struggle to stay above that level.
- Avoid "zero-fee" airport kiosks; they offer the worst exchange rates in the industry by hiding the cost in a terrible conversion ratio.