South Korea’s Currency Crisis and Its Impact on International Higher Education

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The Impact of South Korea’s Political and Economic Crisis on the Won

The declaration of martial law by South Korea’s now-arrested president, Yoon Suk Yeol, led to the won plummeting to its weakest level against the US dollar since the 2009 financial crisis. The won had been steadily depreciating, but the turmoil in December 2024 caused it to surpass 1,474 won per dollar, a 14% increase from the previous year. With South Korea facing political instability and economic challenges, forecasters predict that the won is unlikely to recover soon. This decline could have significant consequences for international higher education, particularly for South Korean students studying in the US, as tuition and living expenses become increasingly unaffordable.


Rising Costs and Potential Shift in Study Abroad Destinations

The sharp depreciation of the won has made US higher education significantly more expensive for Korean families. At the current exchange rate, annual tuition at a public university, previously costing 33 million won, now exceeds 44 million won. Including living expenses, the total annual cost of studying in the US can reach 110 million won—nearly double South Korea’s average household income. This financial burden may deter middle-income families, potentially redirecting Korean students to more affordable destinations such as Australia, Canada, the UK, and European countries. US universities reliant on Korean enrollments must implement financial strategies such as tuition discounts, installment-based payment plans, or currency-hedging options to retain Korean students.


Opportunities for South Korean and Transnational Education Institutions

While the declining won presents challenges for outbound mobility, it also creates opportunities for South Korean universities to strengthen their global competitiveness by positioning themselves as affordable alternatives to overseas education. Neighboring countries like Japan and Singapore, with strong academic reputations and lower tuition costs, may also benefit from this shift. Additionally, US transnational education (TNE) campuses in South Korea can capitalize on the situation by offering globally recognized degrees at lower costs than studying abroad. If these financial pressures are compounded by restrictive immigration and education policies under a second Trump administration, US universities may need to adopt innovative strategies such as hybrid programs, market diversification, and enhanced affordability to sustain international student mobility amid economic uncertainty.


* This is a summary of the original article published on the Times Higher Education https://www.timeshighereducation.com/opinion/south-koreas-falling-currency-could-hit-us-universities.

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