S. Korea's economy hit hard by soaring exchange rates

[Anchor]

The impact of high exchange rates is affecting both domestic consumption and exports, regardless of large corporations or small and medium-sized enterprises.

Concerns are being raised that the situation is more dire than during the past global financial crisis.

Reporter Hwang Da-ye has the story.

[Report]

Today (12.27) at the airport currency exchange.

The price of the dollar has already soared past 1,530 won.

For travelers, whose steps should feel light, the situation is weighing heavily on them.

[Park Beom/Jeonju, Wansan-gu: "(When exchanging 500,000 won) Normally, it would be about 400 dollars, but today it's about 300 dollars."]

Travel agencies and airlines, which are sensitive to exchange rates, are beginning to show signs of damage.

[Kim Hyun-seung/Seoul, Dongdaemun-gu: "There have been many cancellations at travel agencies, so they say they are traveling by van (small bus). The exchange rate has risen too much."]

Due to the impact of the exchange rate, the cost of imported raw materials has risen significantly, and the food industry has already started raising prices.

[Food industry official/voice altered: "Ultimately, it leads to losses for market consumers, and in the long run, companies will also enter a vicious cycle that is very unfavorable..."]

This small business, which exported digital measuring instruments to 37 countries, may have to stop exporting due to rising raw material prices caused by the exchange rate.

[Eun Hee-song/CEO of Incheon Measuring Instruments: "The price of raw materials has skyrocketed. For example, if it was 200 won, now it's 400 won. If we export, we are currently at a loss."]

Large corporations producing semiconductors and automobiles are also facing increased burdens due to rising overseas investment costs.

Research has shown that if the exchange rate rises by 10%, the operating profit margin of large corporations drops by nearly 0.3 percentage points.

This is KBS News, Hwang Da-ye.