Declining won leads to COLA dip in South Korea

Declining won leads to COLA dip in South Korea
By Jennifer H. Svan, Stars and Stripes
Pacific edition, Thursday, January 17, 2008

The cost-of-living allowance for U.S. troops in South Korea dipped for the first time in more than two months, falling two index points for all locations across the peninsula.

The decline comes on the tail of the won weakening against the U.S. dollar.

Last month, the South Korea currency crept to 941.35, a three-month low versus the dollar, according to financial news services.

On Monday, the won-to-dollar exchange rate was 937.

COLA, which is intended to give U.S. servicemembers stationed overseas the same buying power they would have in the States, can fluctuate as the value of local currencies goes up or down.


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