First, "low exchange rate" is a relative concept, which cannot be accurately explained by literal meaning. If we want to explain the meaning of "low exchange rate", we must have a reference. The content of this issue mainly focuses on the exchange of Korean won into RMB, that is, from the perspective of the demand for RMB. Simply put, when a person exchanges Korean won for RMB, a low exchange rate of Korean won means less RMB. For example, when the RMB exchange rate is 170,1700,000 won needs to be converted into RMB 100, while when the RMB exchange rate is 190,1900,000 won needs to be converted into RMB 100.

Second, the relationship between supply and demand is one of the reasons for the exchange rate changes. The exchange rate is always changing because the relationship between supply and demand of two currencies has changed. If the demand of one currency increases and the supply of another increases, the phenomenon of currency appreciation will naturally occur. For example, the exchange rate of Korean won against RMB ranges from 170 to 190, which means that the demand of Korean won for RMB is higher than that of RMB for Korean won, which is one of the reasons for the low exchange rate of Korean won. Of course, the relationship between supply and demand is only one of the many reasons that affect the exchange rate change, and I won't elaborate on other reasons.

Third, according to Korea's foreign exchange control law, except for banks and institutions approved by the government, any form of currency exchange through transfer is illegal. Although the money changers in the market hold the business license issued by the Korean government, their business scope is limited to cash exchange, and it is still illegal to exchange money by transfer.

4. When will the exchange rate of won rise?

This paper analyzes the reasons for the low exchange rate of the won, and naturally understands when the exchange rate will rise. Through reverse thinking, it can be inferred that the exchange rate will naturally go up when the supply of won decreases and the demand increases. However, judging from the prevalence of fraud and "moving bricks" in Korea Telecom, the demand for RMB should not decline in a short time. Perhaps when the epidemic is over and a large number of tourists need won, the exchange rate of won will rise. Of course, the Korean government has banned telecom fraud and "moving bricks" on a large scale, and the supply of won has decreased, and the exchange rate may also rise slightly.