After the 1997 currency crisis, Korea switched to a floating exchange rate system. The study evaluates Korea's experience with this system and discusses the selection of the right exchange rate regime. It suggests that different countries may need different exchange rate systems and that a one-size-fits-all approach may not work. The analysis shows that Korea initially operated a managed floating exchange rate system to stabilize the currency after the crisis, but has since transitioned towards a more flexible exchange rate system.