Households that have repeatedly experienced won-dollar exchange-rate surges reduce spending less during later periods of currency weakness, a Bank of Korea study found. The analysis, titled "An Analysis of the Relationship Between Experience of Exchange Rate Surges and Household Consumption," examined 4,460 observations from the Korean Labor and Income Panel Study covering 1998 through 2024. It identified a learning effect, with households adapting to the loss of purchasing power caused by a weaker won. The pattern was strongest among Generation X, households with fewer assets and those carrying the heaviest debt-servicing burdens. Generation X members, born between 1965 and 1980, reduced spending less as their exposure to earlier currency spikes increased, while the MZ generation, born between 1981 and 2010, cut spending relatively more. South Korea recorded major won-dollar increases in 1998, 2001, 2008 and 2022, with the average annual rate rising 47.1% to 1,398.9 won in 1998 from 951.1 won in 1997. The adaptation effect was clearest in discretionary spending, telecommunications and vehicle maintenance costs.