With all the income/profit coming as KRW and JPY, when do I need to consider currency hedging?
I couldn't find any rule of thumb to guide me. I probably should not spend time and cost performing currency hedging when the currency exposure is less than SGD 100,000.
At the mean time, I should probably just performing a monthly conversion to SGD.
Korean Won (KRW)
For KRW, it is not so straight forward. There is no direct conversion between KRW and SGD. I have two options:
1) KRW.JPY, then SGD.JPY
2) KRW.USD, then USD.SGD
Since USD has a tighter spread, I should use the second option.
Japanese Yen (JPY)
For JPY, it is simple, there is a SGD.JPY for conversion.
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