A, frequent traveler to Japan came across a post on the secondhand platform Danggeun Market on Apr. 8 and immediately reached out via chat. The listing offered Japanese yen at a discounted rate—an enticing deal, especially as the won-to-yen exchange rate had surpassed 1,000 won per 100 yen the previous day for the first time in two years. The seller claimed the yen would be placed on their door handle once payment was received. When A called the number, his phone flagged it as a “suspected scam number.” As the yen gains strength, such fraud schemes are beginning to surface.
The Japanese currency, which had long remained weak under Japan’s ultra-low interest rate policy, began to rebound earlier this year after the Bank of Japan raised its benchmark rate. More recently, U.S. President Donald Trump’s announcement of new tariffs fueled demand for safe-haven assets, further bolstering the yen. After trading around 150 per U.S. dollar, the yen has recently settled in the 146–147 range.
As of 3:30 p.m. on Apr. 9, the won-to-yen exchange rate stood at 1,020.91 won per 100 yen—the highest level since Mar. 17, 2022, when it reached 1,022.27 won. With the rate breaching the symbolic 1,000-won mark, new trends are emerging in South Korea. Those who had exchanged yen in advance are moving to lock in profits, while travelers preparing for spring trips to Japan are scrambling to purchase yen at more favorable rates.
According to financial industry data on Apr. 10, yen-denominated deposits at South Korea’s five major banks—KB Kookmin, Shinhan, Hana, Woori and NH NongHyup—fell to 870.1 billion yen as of Apr. 7, down from 926.6 billion yen at the end of March. The 56.5 billion yen decrease in just one week translates to roughly 5.6 trillion won. Compared to the 1.0692 trillion yen recorded at the end of January, deposits have declined by nearly 200 billion yen.
The drop suggests that investors who had engaged in “yen-tech”—a combination of yen speculation and financial strategy—when the rate hovered around 850 won per 100 yen in the first half of last year are now taking profits. Back in June 2024, yen deposits at the five major banks peaked at a record 1.2929 trillion yen, and remained above the 1 trillion yen mark for 17 consecutive months until the end of January this year.
B, who recently returned from Japan, withdrew 150,000 yen in cash from a local ATM. Although the funds were loaded onto a travel card, he opted to withdraw cash as the yen appreciated. Travel cards—used for overseas payments by preloading foreign currency—typically don’t incur ATM withdrawal fees abroad. However, converting leftover foreign currency back into won through mobile apps can involve fees or offer disadvantageous exchange rates. “I figured I’d get a better rate at a currency exchange in Myeong-dong, which usually pays 10 won more per 100 yen,” B said. “That adds up to about 20,000 won more—enough to cover my transportation costs.”
In contrast, C, who had planned a family trip to Osaka in mid-April, expressed concern about rising travel expenses. “Everyone kept saying Japan is cheaper than Jeju Island, so we booked early,” she said. “But now that the yen has strengthened, the total cost for four people is looking higher than we expected.”
The yen’s rise is already affecting demand for travel to Japan. According to Kyowon Tour on Apr. 10, bookings for trips departing during the upcoming Golden Week holiday period, from May 1 to May 6, have declined by 45% compared to last year. Japan, which ranked third among overseas destinations in 2024 behind Vietnam and Europe, has now fallen to fifth place, overtaken by Thailand and China.
Even minor fluctuations in the exchange rate are triggering rapid shifts in currency activity. After Trump announced a 90-day suspension of reciprocal tariffs for all countries except China, the yen weakened slightly, with the dollar-to-yen rate rising to 148 on Apr. 9. As a result, South Korea’s won-to-yen exchange rate moved to the 980–990 won range per 100 yen on Apr. 10.
