Umbrellas are placed on the ground in front of Gyeongbok Palace in central Seoul as tourists take a photo on July 9.YONHAP
Happy Thursday! The rains have taken a little break here in Seoul as we move closer and closer to the weekend. Here are the stories you need to know in Korea.
In today's news, experts are urging the Bank of Korea to up its foreign exchange holdings to prevent a currency crisis. We look at how hanok (traditional Korean-style home) stays are growing in popularity among international visitors. We also speak to the Mongolian ambassador to Korea about bilateral ties and trade.
What's happening? The won's weakness against the dollar has prompted experts to urge the Korean central bank to build up its foreign exchange reserves, saying that the country's holdings are currently not enough compared to the vulnerability of the currency.
How will this help? Experts say that foreign reserves serve as a key buffer for the Bank of Korea, allowing it to intervene in currency markets during volatile periods. "If Korea's foreign exchange reserves remain at the current level as fiscal spending expands and government debt rises, the country could slip faster into another foreign exchange crisis," said Kim Dae-jong, a business professor at Sejong University.
What do Korea's foreign exchange holdings look like? The country's foreign reserves fell below the adequacy threshold recommended by the International Monetary Fund (IMF) in 2022. The organization stopped tracking Korea's adequacy threshold in 2023. However, experts say the current levels remain inadequate. “Foreign exchange reserves are a safety buffer, but ours are only about 22 percent of [last year’s] GDP — far lower than other regions like Taiwan,” Kim said.
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Traditional stays stand apart from other offerings
What's so special about these kinds of stays? Hanok stays have grown in popularity of late as they merge the past with the present for travelers who are looking for a unique Korean experience. The accommodations utilize traditional Korean-style houses, some of which are refurbished with modern amenities.
What is making them popular? Tourists are attracted to the historical aspect of the buildings, while also using the stay as an opportunity to be immersed in Korean culture. Some stays lean into this by including traditional touches, like the use of hanji (mulberry paper) in the design or traditional buckwheat pillows in bedrooms.
Where are these hanok stays located? While there are hanok located in Seoul, in areas like Bukchon Hanok Village and Eunpyeong Hanok Village, other stays in more rural areas of Korea have also begun attracting guests. These types of stays, like Awon Hanok in South Jeolla's Wanju, offer a traditional experience as well as an escape from the hustle and bustle of Korea's major cities.
It has been 15 years since a Korean president has visited Mongolia? It has, indeed. Korean President Lee Jae Myung is currently in Mongolia for his first state visit to the country during his presidency. The Korea JoongAng Daily recently met with Mongolia's Ambassador to Korea Sukhee Sukhbold to talk about the diplomatic ties between the two countries.
What is the state of Korea-Mongolia ties like currently? Mongolia is a close partner of Korea's in the region, and the ambassador sees a "golden era" of Korea-Mongolia relations coming in the near future, calling it a "new era" for cooperation. Sukhbold says the leaders of Korea and Mongolia are likely to discuss cooperation on trade and investment, particularly in the area of rare earths.
The food in the picture looks really good. Where was this picture taken? The Korea JoongAng Daily met the Mongolian ambassador at a restaurant called Seoul Nomad in eastern Seoul. The restaurant offers Mongolian cuisine that captures the country's nomadic heritage — including dishes such as khorkhog and dumplings. We recently published a review of the restaurant here on our website.
