Central Bank of the Democratic People's Republic of Korea

In December 1945, the Pyongyang branch of the Bank of Chōsen created a temporary monetary office, known as the "calculation office". On {{date|1946/01/09}}, the central bank of North Korea was created with use of all branches of the Bank of Chōsen on North Korean territory.{{cite web |website=KBS World |date={{date|2019/10/03}} |url=https://world.kbs.co.kr/service/contents_view.htm?lang=e&menu_cate=northkorea&board_seq=371977 |title=Banks in N. Korea}} In practice, that central bank was under the control of the Soviet Armed Forces.{{cite book|last=McCune|first=George M.|title=Korea Today|publisher=READ BOOKS|date=2007|pages=193|isbn=978-1-4067-2764-7}} It was complemented in April 1946 by the creation of a Farmers' Bank. However, the Soviet-controlled central bank failed to accomplish its objectives, being unable to meet its costs of operation, and its 100 million wŏn capitalisation proved to be insufficient,McCune, 2007, p. 194. and the North Korean Interim People's Committee opted to work mainly through the Farmers' Bank.

On {{date|1946/10/29}}, the system was reorganized. 58 local banks were merged into the central bank, including North Korean operations of Japanese-era Korean banks headquartered in Seoul such as Chōsen Commercial Bank, Chōsen Savings Bank, or Chōsen Trust. Simultaneously, control of the central bank was taken over from the Soviet forces by the North Korean government through its finance ministry. By 1947, the Central Bank and Farmers' Bank were the only two credit institutions in the country and together formed its single-tier banking system in line with the Soviet model. In June 1947, around 1,000 million wŏn was concentrated in the Central Bank, allowing it to extend credits totalling 900 million wŏn for economic rehabilitation.McCune, 2007, p. 195. The consolidation reflected a return to the original objectives of the People's Committee, which desired tight control over the North Korean economy. Any bank employees opposed to the changes within the system were removed from their posts. On {{date|1947/12/06}}, a comprehensive program of currency reform was announced.

In 1959, the Farmers' Bank was merged into the Central Bank of the Democratic People's Republic of Korea, and the Foreign Trade Bank was established to handle the Central Bank's international business.{{cite book|last=Hoare|first=James|author2=Pares, Susan|title=A political and economic dictionary of East Asia|publisher=Routledge|date=2005|pages=31|isbn=978-1-85743-258-9}} Further state banks to deal with foreign exchange operations were created between 1987 and 1996.{{cite web |website=Library of Congress |url=https://www.marines.mil/portals/1/Publications/North%20Korea%20Profile.pdf |title=Country Profile: North Korea |date=July 2007}}{{rp|10}}

In 2011 the Central Bank building was torn down to make way for the newly constructed Mansudae/Changjon Street Area in celebration of Kim Il Sung's 100th birthday anniversary. The new site of the Central Bank building is located in the Ot'an-dong division of Chung-guyok.{{Cite web |last=Melvin |first=Curtis |date=2013-07-03 |title=Revealed: Pyongyang's new Central Bank headquarters {{!}} NK News |url=https://www.nknews.org/2013/07/revealed-pyongyangs-new-central-bank-headquarters/ |access-date=2024-10-30 |website=NK News - North Korea News |language=en-US}}

The Central Bank has over 220 branches. It operates the Chŏnsŏng electronic cash card.{{cite news |url=http://38north.org/2017/04/rfrank040617/ |title=Consumerism in North Korea: The Kwangbok Area Shopping Center |first=Ruediger |last=Frank |publisher=U.S.-Korea Institute, Johns Hopkins University School of Advanced International Studies |work=38 North |date=6 April 2017 |accessdate=10 April 2017}}

• Ministry of Finance (North Korea)
• List of banks in North Korea
• List of central banks

{{reflist|30em}}

• {{cite book|author=Kim Il-sung|title=Kim Il Sung: Works|volume=2|year=1980|orig-year=1946|location=Pyongyang|publisher=Foreign Languages Publishing House|oclc=827642144|chapter=On Strengthening State Discipline and Founding the Central Bank of North Korea|chapter-url=http://www.korean-books.com.kp/KBMbooks/en/work/leader1/00000502.pdf#page=466|pages=450–457}}

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Category:Banks of North Korea

Korea, North

Category:1947 establishments in Korea

Category:Banks established in 1947

Category:Cabinet of North Korea

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