The article examines how economic fundamentals affect exchange rates in Korea under different exchange rate regimes. After the 1997 economic crisis, Korea shifted from limited flexibility to free floating exchange rates. The study shows that economic fundamentals impact exchange rates similarly under both regimes, but the size of exchange rate shocks is larger under free floating. Additionally, the impact of exchange rate shocks on inflation is not significantly different between the two regimes. These findings align with previous research on regime neutrality.