:South Korean won

{{main|Etymology of the Korean currencies}}

{{see also|Korean won (disambiguation)}}

The old "won" was a cognate of the Chinese yuan and Japanese yen, which were both derived from the Spanish-American silver dollar. It is derived from the hanja {{lang|ko|圓}} ({{lang|ko|원}}, {{Transliteration|ko|rr|won}}), meaning "round", which describes the shape of the silver dollar.

The won was subdivided into 100 {{Transliteration|ko|rr|jeon}} ({{korean|hangul=전|hanja=錢|mr=chŏn}}), itself a cognate of the East Asian unit of weight mace and synonymous with money in general. The current won (1962 to present) is written in hangul only and does not officially have any hanja associated with it.{{cite web | author=Bank of Korea | script-title=ko:화폐 < 홍보교육자료 < 우리나라 화폐단위 변경 {{!}} 한국은행 홈페이지. #1 | url=http://www.bok.or.kr/broadcast.action?menuNaviId=2074 | archive-url=https://web.archive.org/web/20150923193330/http://www.bok.or.kr/broadcast.action?menuNaviId=2074 | url-status=dead | archive-date=September 23, 2015 | language=ko | access-date=November 24, 2012 | quote=한글로만 표기" → Translation: "Spelling in hangul only }}{{Cite web |url=http://stdweb2.korean.go.kr/search/View.jsp?idx=465171 |title=Entry in Standard Korean Language Dictionary |access-date=May 8, 2018 |archive-date=May 8, 2018 |archive-url=https://web.archive.org/web/20180508121726/http://stdweb2.korean.go.kr/search/View.jsp?idx=465171 |website=Standard Korean Language Dictionary |url-status=dead }}

{{main|South Korean won (1945–1953)}}

The Korean won, Chinese yuan and Japanese yen were all derived from the Spanish-American silver dollar, a coin widely used for international trade between Asia and the Americas from the 16th to 19th centuries.

During the colonial era under the Japanese (1910–45), the won was replaced by the Korean yen which was at par with the Japanese yen.

After World War II ended in 1945, Korea was divided, resulting in two separate currencies, both called won, for the South and the North. Both the Southern won and the Northern won replaced the yen at par. The first South Korean won was subdivided into 100 jeon.

The South Korean won initially had a fixed exchange rate to the U.S. dollar at a rate of 15 won to 1 dollar. A series of devaluations followed, the later ones, in part, due to the Korean War (1950–53). The pegs were:

The first South Korean won was replaced by the hwan on February 15, 1953, at a rate of 1 hwan = 100 won.{{cite book |author1=The Bank of Korea |title=KOREAN CURRENCY: for better understanding of Korean currency |date=January 23, 2013 |page=10 |url=https://books.google.com/books?id=6cFuBgAAQBAJ&pg=PA10 |access-date=May 3, 2020}}

In 1946, the Bank of Joseon introduced 10 and 100 won notes. These were followed in 1949 by 5 and 1,000 won notes.

A new central bank, the Bank of Korea, was established on June 12, 1950,{{cite book | last1 = Linzmayer | first1 = Owen | title = The Banknote Book | chapter = South Korea | publisher = banknotenews.com | year = 2012 | location = San Francisco, CA | url = http://www.banknotebook.com/ | access-date = August 17, 2012 | archive-date = August 29, 2012 | archive-url = https://web.archive.org/web/20120829063428/http://www.banknotebook.com/ | url-status = live }} and assumed the duties of Bank of Joseon. Notes were introduced (some dated 1949) in denominations of 5, 10 and 50 jeon, and 100 and 1,000 won. The 500 won notes were introduced in 1952. In 1953, a series of banknotes was issued which, although it gave the denominations in English in won, were, in fact, the first issues of the hwan.

The won was reintroduced on June 10, 1962, at a rate of 1 won = 10 hwan. It became the sole legal tender on March 22, 1975, with the withdrawal of the last circulating hwan coins. Its ISO 4217 code is KRW. At the reintroduction of the won in 1962, its value was pegged at 125 won = {{USD|1}}. The following pegs operated between 1962 and 1980:

On February 27, 1980, efforts were initiated to lead to a floating exchange rate. The won was finally allowed to float on December 24, 1997, when an agreement was signed with the International Monetary Fund.{{cite web| url=http://users.erols.com/kurrency/asia.htm| title=Tables of modern monetary history: Asia| access-date=November 16, 2006| author=Kurt Schuler| date=February 29, 2004| work=Currency Boards and Dollarization |archive-url = https://web.archive.org/web/20070112132244/http://users.erols.com/kurrency/asia.htm |archive-date = January 12, 2007}} Shortly after, the won was devalued to almost half of its value, as part of the 1997 Asian financial crisis.

Until 1966, 10 and 50 hwan coins, revalued as 1 and 5 won, were the only coins in circulation. New coins, denominated in won, were introduced by the Bank of Korea on August 16, 1966, in denominations of 1, 5 and 10 won, with the 1 won struck in brass and the 5 and 10 won in bronze. These were the first South Korean coins to display the date in the Gregorian calendar, earlier coins having used the Korean calendar. The 10 and 50 hwan coins were demonetized on March 22, 1975.{{cite web |url=http://www.bok.or.kr/template/eng/html/index.jsp?tbl=tbl_FM0000000066_CA0000001020 |title=Currency Issue System |access-date=November 9, 2006 |publisher=Bank of Korea |archive-url=https://web.archive.org/web/20060826081444/http://www.bok.or.kr/template/eng/html/index.jsp?tbl=tbl_FM0000000066_CA0000001020 |archive-date=August 26, 2006 |url-status=dead }}

In 1968, as the intrinsic value of the brass 1 won coin far surpassed its face value, new aluminium 1 won coins were issued to replace them. As an attempt to further reduce currency production costs, new 5 and 10 won coins were issued in 1970, struck in brass. Cupronickel 100 won coins were also introduced that year, followed by cupronickel 50 won coins in 1972.

In 1982, with inflation and the increasing popularity of vending machines, 500 won coins were introduced on June 12, 1982. In January 1983, with the purpose of standardizing the coinage, a new series of 1, 5, 10, 50, and 100 won coins was issued, using the same layout as the 500 won coins, but conserving the coins' old themes.

The Bank of Korea announced in early 2006 its intention to redesign the 10 won coin by the end of that year. With the increasing cost of production, then at 38 won per 10 won coin, and rumors that some people had been melting the coins to make jewelry, the redesign was needed to make the coin more cost-effective to produce.{{cite news|url=http://times.hankooki.com/lpage/biz/200601/kt2006011318125411870.htm |title=New W10 Coin to Debut |access-date=December 11, 2006 |date=January 13, 2006 |publisher=The Korea Times |url-status=dead |archive-url=https://web.archive.org/web/20060115054525/http://times.hankooki.com/lpage/biz/200601/kt2006011318125411870.htm |archive-date=January 15, 2006 }} The new coin is made of copper-coated aluminium with a reduced diameter of {{convert|18|mm}}, and a weight of {{convert|1.22|g}}. Its visual design is the same as the old coin.{{cite news|url=http://english.kbs.co.kr/news/newsview_sub.php?menu=3&key=2006081017 |title=New 10-won Coins to Debut |access-date=December 11, 2006 |date=August 10, 2006 |publisher=KBS Global |url-status=dead |archive-url=https://web.archive.org/web/20080321123629/http://english.kbs.co.kr/news/newsview_sub.php?menu=3&key=2006081017 |archive-date=March 21, 2008 }} The new coin was issued on December 18, 2006.{{cite news| url = http://news.media.daum.net/economic/industry/200612/11/Edaily/v15007706.html| script-title = ko:1원짜리 만한 10원 동전 18일 나온다| access-date = December 11, 2006| date = December 11, 2006| publisher = Daum Media| language = ko| url-status = dead| archive-url = https://web.archive.org/web/20071016190305/http://news.media.daum.net/economic/industry/200612/11/Edaily/v15007706.html| archive-date = October 16, 2007}}{{cite news| url = http://english.kbs.co.kr/news/newsview_sub.php?menu=3&key=2006121114| title = New 10-won Coins to Debut Next Week| access-date = December 12, 2006| date = December 11, 2006| publisher = KBS Global| url-status = dead| archive-url = https://web.archive.org/web/20080618185306/http://english.kbs.co.kr/news/newsview_sub.php?menu=3&key=2006121114| archive-date = June 18, 2008}}

The 1 and 5 won coins are rarely in circulation since 1992, and prices of consumer goods are rounded to the nearest 10 won. However, they are still in production, minting limited amounts of these two coins every year, for the Bank of Korea's annual mint sets.[http://dokdo-research.com/bankofkoreamintsets.html Bank of Korea Mint Sets - 한국은행 민트 세트] {{Webarchive|url=https://web.archive.org/web/20170930152344/http://dokdo-research.com/bankofkoreamintsets.html |date=September 30, 2017 }} Dokdo Research (dokdoresearch.com). Retrieved on July 5, 2017.

In 1998, the production costs per coin were: 10 won coins each cost 35 won to produce, 100 won coins cost 58 won, and 500 won coins cost 77 won.{{cite news|url=http://english.chosun.com/w21data/html/news/199802/199802190510.html |title=Coins Return to the Bank |access-date=March 26, 2007 |date=February 19, 1998 |publisher=The Chosun Ilbo |url-status=dead |archive-url=https://web.archive.org/web/20040909001646/http://english.chosun.com/w21data/html/news/199802/199802190510.html |archive-date=September 9, 2004 }}

The Bank of Korea designates banknote and coin series in a unique way. Instead of putting those of similar design and issue dates in the same series, it assigns series number X to the Xth design of a given denomination. The series numbers are expressed with Korean letters used in alphabetical order, e.g. {{Korean|labels=no|hangul=가, 나, 다, 라, 마, 바, 사}}. Therefore, 1,000 won issued in 1983 is series II ({{Korean|hangul=나|labels=no}}) because it is the second design of all 1,000 won designs since the introduction of the South Korean won in 1962.

In 1962, 10 and 50 jeon, 1, 5, 10, 50, 100 and 500 won notes were introduced by the Bank of Korea. The first issue of 1, 5, 10, 50, 100 and 500 won notes was printed in the UK by Thomas De La Rue. The jeon notes together with a second issue of 10 and 100 won notes were printed domestically by the Korea Minting and Security Printing Corporation.

In 1965, 100 won notes (series III) were printed using intaglio printing techniques, for the first time on domestically printed notes, to reduce counterfeiting. Replacements for the British 500 won notes followed in 1966, also using intaglio printing, and for the 50 won notes in 1969 using lithoprinting.

With the economic development from the 1960s, the value of the 500 won notes fell, resulting in a greater use of cashier's checks with higher fixed denominations as means of payment, as well as an increased use of counterfeited ones. In 1970, the 100 won notes were replaced by coins, with the same happening to the 50 won notes in 1972.

Higher-denomination notes of 5,000 and 10,000 won were introduced in 1972 and 1973, respectively. The notes incorporated new security features, including watermark, security thread, and ultraviolet response fibres, and were intaglio printed. The release of 10,000 won notes was planned to be at the same time as the 5,000 won notes, but problems with the main theme delayed it by a year.{{cite web | title=Brief History of current Korea notes in circulation; 10,000 won note | publisher=Bank of Korea | url=http://www.bok.or.kr/broadcast.action?menuNaviId=1693 | archive-url=https://web.archive.org/web/20170505104334/http://www.bok.or.kr/broadcast.action?menuNaviId=1693 | url-status=dead | archive-date=May 5, 2017 | format=Flash and HTML | access-date=January 13, 2016 }} Newly designed 500 won notes were also released in 1973, and the need for a medium denomination resulted in the introduction of 1,000 won notes in 1975.

In 1982, the 500 won note was replaced by a coin. The following year, as part of its policy of rationalizing the currency system, the Bank of Korea issued a new set of notes, as well as a new set of coins. Some of the notes' most notable features were distinguishable marks for the blind under the watermark and the addition of machine-readable language in preparation for mechanization of cash handling. They were also printed on better-quality cotton pulp to reduce the production costs by extending their circulation life.

To cope with the deregulation of imports of color printers and the increasing use of computers and scanners, modified 5,000 and 10,000 won notes were released between 1994 and 2002 with various new security features, which included color-shifting ink, microprint, segmented metal thread, moiré, and EURion constellation. The latest version of the 5,000 and 10,000 won notes are easily identifiable by the copyright information inscribed under the watermark: "{{Korean|labels=no|hangul=© 한국은행}}" and year of issue on the obverse, "© The Bank of Korea" and year of issue on the reverse.

The plates for the 5,000 won notes were produced in Japan, while the ones for the 1,000 and 10,000 won notes were produced by the Korea Minting and Security Printing Corporation. They were all printed in intaglio.

In 2006, it became a major concern that the South Korean won banknotes were being counterfeited. This led the government to issue a new series of banknotes, with the 5,000 won note being the first one to be redesigned. Later in 2007, the 1,000 and 10,000 won notes were introduced.

On June 23, 2009, the Bank of Korea released the 50,000 won note. The obverse bears a portrait of Shin Saimdang, a prominent 16th-century artist, calligrapher, and mother of Korean scholar Yulgok, also known as Yi I, who is on the 5,000 won note. This note is the first Korean banknote to feature the portrait of a woman.{{cite web|url=http://english.chosun.com/w21data/html/news/200902/200902260003.html |title=W50,000 Bill Unveiled |publisher=The Chosun Ilbo |date=February 26, 2009 |access-date=January 13, 2016 |url-status=dead |archive-url=https://web.archive.org/web/20090301095424/http://english.chosun.com/w21data/html/news/200902/200902260003.html |archive-date=March 1, 2009 }} The release of the 50,000 won note stirred some controversy among shop owners and those with visual impairments due to its similarity in color and numerical denomination with the 5,000 won note.{{cite web |url=http://www.asianewsnet.net/news.php?sec=2&id=6534 |archive-url=https://web.archive.org/web/20110615162029/http://www.asianewsnet.net/news.php?sec=2&id=6534 |url-status=dead |archive-date=June 15, 2011 |title=ANN |publisher=Asianewsnet.net |access-date=July 26, 2013 }}

New 100,000 won notes were also announced, but their release was later cancelled due to the controversy over the banknote's planned image, featuring the Daedongyeojido map, and not including the disputed Dokdo islands.{{cite web |url=https://www.koreatimes.co.kr/www/news/biz/2009/01/123_38457.html |title=50,000-Won Banknote to Be Issued in May |publisher=The Korea Times |date=January 27, 2009 |access-date=September 1, 2012 |archive-date=May 23, 2022 |archive-url=https://web.archive.org/web/20220523031042/https://www.koreatimes.co.kr/www/news/biz/2009/01/123_38457.html |url-status=live }}{{cite web |url=https://www.koreatimes.co.kr/www/news/biz/2009/01/123_38457.html |title=50,000-Won Banknote to Be Issued in May |publisher=The Korea Times |date=January 27, 2009 |access-date=February 9, 2014 |archive-date=May 23, 2022 |archive-url=https://web.archive.org/web/20220523031042/https://www.koreatimes.co.kr/www/news/biz/2009/01/123_38457.html |url-status=live }}{{cite web |url=http://english.donga.com/srv/service.php3?biid=2009010147518 |title=Debut of W100,000 Note Delayed Indefinitely |publisher=English.donga.com |date=January 1, 2009 |access-date=February 13, 2014 |archive-date=January 5, 2016 |archive-url=https://web.archive.org/web/20160105175600/http://english.donga.com/srv/service.php3?biid=2009010147518 |url-status=live }}{{cite web|url=http://news.asiaone.com/News/Latest%2BNews/Asia/Story/A1Story20081218-108820.html |archive-url=https://web.archive.org/web/20140223005846/http://news.asiaone.com/News/Latest%2BNews/Asia/Story/A1Story20081218-108820.html |url-status=dead |archive-date=February 23, 2014 |title=SKorea shelves new banknote |publisher=News.asiaone.com |date=December 18, 2008 |access-date=February 13, 2014}} Also of controversy was the appearance of Kim Ku on the note, who is controversial among the South Korean right.{{Cite web |last= |date=July 17, 2020 |title=10만원권 못 나온 이유는?… "김구 초상 쓰는 것에 반대 있었기 때문" |url=https://www.chosun.com/site/data/html_dir/2019/06/07/2019060701529.html |access-date=January 8, 2024 |website=The Chosun Ilbo |language=ko |archive-date=January 8, 2024 |archive-url=https://web.archive.org/web/20240108093436/https://www.chosun.com/site/data/html_dir/2019/06/07/2019060701529.html |url-status=live }}

The banknotes include over 10 security features in each denomination. The 50,000 won note has 22 security features, the 10,000 won note 21, the 5,000 won note 17, the 2,000 won note 10 and the 1,000 won note 19. Many modern security features that can be also found in euros, pounds, Canadian dollars, and Japanese yen are included in the banknotes.

Some security features inserted in won notes are:

• Holograms with three-dimensional images that change colors within the metallic foil on the obverse side of the notes (except ₩1,000)
• Watermark portraits of the effigy of the note are visible when held to the light in the white section of the note.
• Intaglio printing on words and the effigy give off a raised feeling, different from ordinary paper
• Security thread in the right side of the obverse side of the note with small lettering "{{Korean|hangul=한국은행|labels=no}} Bank of Korea" and its corresponding denomination
• Color-shifting ink on the value number at the back of the note:

For the first time in the world, KOMSCO, the Korean mint, inserted a new substance in the notes to detect counterfeits. This technique is being exported, such as to Europe and North America.http://www.bok.or.kr/template/newbanknotes/eng/html/index.jsp=tbl_FM0000000066_CA0000003607 {{dead link|date=September 2012}}

As the South Korean economy is evolving through the use of electronic payments, coins of the South Korean won are becoming less used by consumers. The Bank of Korea began a trial which would result in the total cessation of the production of coins by depositing change into prepaid cards.[https://www.bbc.com/news/blogs-news-from-elsewhere-39639226 South Korea begins coinless society trial] {{Webarchive|url=https://web.archive.org/web/20180508075521/http://www.bbc.com/news/blogs-news-from-elsewhere-39639226 |date=May 8, 2018 }} BBC (www.bbc.com). April 19, 2017. Retrieved on July 14, 2017. As of 2019, however, public participation in this program has decreased.{{cite web |url=https://koreajoongangdaily.joins.com/2019/10/13/finance/Coinless-society-still-full-of-coins/3068992.html |title='Coinless society' still full of coins |publisher=Korea JoongAng Daily |date=January 20, 2020 |accessdate=March 16, 2022 |archive-date=February 11, 2022 |archive-url=https://web.archive.org/web/20220211101731/https://koreajoongangdaily.joins.com/2019/10/13/finance/Coinless-society-still-full-of-coins/3068992.html |url-status=live }}

There have been recurring proposals in the South Korean National Assembly to redenominate the won by introducing a new won or new unit, equal to 1,000 old won, and worth nearly one U.S. dollar. While proponents cite a more valuable currency unit better projects the strength of the nation's economy, a majority remain opposed to the idea. Reasons cited are: economic harm if done immediately, no issues on public confidence in the won and its inflation rate, limited cost savings, and the presence of more urgent economic issues.{{cite web |url=https://www.koreatimes.co.kr/www/biz/2019/04/488_267185.html |title=Redenomination: boon or bane? |publisher=The Korea Times |date=April 15, 2019 |accessdate=March 16, 2022 |archive-date=April 16, 2022 |archive-url=https://web.archive.org/web/20220416001922/https://www.koreatimes.co.kr/www/biz/2019/04/488_267185.html |url-status=live }}

The Bank of Korea is the only institution in South Korea with the right to print banknotes and mint coins. The banknotes and coins are printed at the KOMSCO, a government-owned corporation, under the guidance of the Bank of Korea.

After the new banknotes and coins are minted, they are bundled or rolled and shipped to the headquarters of the Bank of Korea. When delivered, they are deposited inside the bank's vault, ready to be distributed to commercial banks when requested.

Every year, around Seollal and Chuseok, two major Korean holidays, the Bank of Korea distributes large amounts of its currency to most of the commercial banks in South Korea, which are then given to their customers upon request.

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{{Most traded currencies}}

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{{Exchange Rate|KRW|EUR|JPY|USD}}

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• Economy of South Korea
• Korean currency
• North Korean won
• [http://www.banknote.ws/COLLECTION/countries/ASI/KOS/KOS.htm All Banknotes issued in Korea]

}}

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{{refbegin|2}}

• {{numis cite SCWC | date=2004}}
• {{numis cite SCWPM | date=2005}}
• {{numis cite SCWPM | date=1960.8}}

{{refend}}

{{Commons category|Money of South Korea}}

• {{cite news | title=BOK Announces Smaller Banknotes

| url=http://moneystuff.org

| publisher=The Chosun Ilbo | date=July 21, 2005 | access-date=October 17, 2006 |archive-url = https://web.archive.org/web/20061026031515/http://english.chosun.com/w21data/html/news/200507/200507210018.html |archive-date = October 26, 2006}}

• {{cite news | title=New W5,000 Ready for Release on Jan. 2 | url=http://moneystuff.org/2017/10/08/investment-books/

| publisher=The Chosun Ilbo | date=December 13, 2005 | access-date=October 17, 2006 |archive-url = https://web.archive.org/web/20061026031455/http://english.chosun.com/w21data/html/news/200512/200512130005.html |archive-date = October 26, 2006}}

• {{cite news | title=New W1,000 Note Unveiled

| url=http://moneystuff.org/2017/10/06/5-passive-income-ideas-tips-to-make-money-as-you-sleep/

| publisher=The Chosun Ilbo | date=January 17, 2006 | access-date=October 17, 2006 |archive-url = https://web.archive.org/web/20061026031404/http://english.chosun.com/w21data/html/news/200601/200601170021.html |archive-date = October 26, 2006}}

• {{cite news | title=Dollar Plummets to Pre-Crisis Level Against Won

| url=http://english.chosun.com/w21data/html/news/200601/200601250030.html

| publisher=The Chosun Ilbo | date=January 25, 2006 | access-date=October 17, 2006 |archive-url = https://web.archive.org/web/20061026030859/http://english.chosun.com/w21data/html/news/200601/200601250030.html |archive-date = October 26, 2006}}

• {{cite news | title=New W5,000 Bills Forgery- but not Water-Proof

| url=http://moneystuff.org/2017/10/01/3-tips-save-1000-quickly/

| publisher=The Chosun Ilbo | date=January 25, 2006 | access-date=October 17, 2006 |archive-url = https://web.archive.org/web/20061026032445/http://english.chosun.com/w21data/html/news/200601/200601250012.html |archive-date = October 26, 2006}}

• {{cite news | title=New W10,000 Note Unveiled

| url=http://english.chosun.com/w21data/html/news/200605/200605180022.html

| publisher=The Chosun Ilbo | date=May 18, 2006 | access-date=October 17, 2006 |archive-url = https://web.archive.org/web/20060709125108/http://english.chosun.com/w21data/html/news/200605/200605180022.html |archive-date = July 9, 2006}}

• [https://web.archive.org/web/20150923193302/http://www.bok.or.kr/broadcast.action?menuNaviId=1692 New South Korean won banknotes], information page of BOK's new notes
• [http://www.thefreedictionary.com/won Pronunciation of Won at freedictionary.com]
• {{cite web|url=http://www.bis-ans-ende-der-welt.net/Suedkorea-B-En.htm|title=The banknotes of South Korea|language=en,de|editor=Heiko Otto|access-date=October 21, 2018}}

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{{Economy of South Korea}}

{{Historical currencies of Korea}}

{{Currencies of Asia}}

{{Portal bar|Asia|Money|Numismatics|South Korea}}

{{DEFAULTSORT:South Korean Won}}

Category:1962 in South Korea

Category:1962 establishments in South Korea

Category:Currencies of South Korea

Category:Government of South Korea

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Category:Currencies introduced in 1962

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