South Korean Won
The won (원) (symbol: ₩; code: KRW) is the currency of South
Korea. A single won is divided into 100 jeon, the monetary subunit. The jeon
is no longer used for everyday transactions, and appears only in foreign
exchange rates. The won is issued by the Bank of Korea, based in the capital city, Seoul. The official currency of North
Korea, issued by the Central Bank of the
Democratic People's Republic of Korea which is based in its capital city, Pyongyang, is divided into the same
number of units, and is known as the North Korean won.
Etymology
The old
"won" was a cognate of the Chinese yuan and Japanese yen. It is derived from
the Hanja (원), itself a
cognate of the Chinese character 圓 (yuan) which means "round shape."
The won was subdivided into 100 jeon (Hangul: 전; hanja: 錢; RR: jeon;MR: chŏn),
itself a cognate of the Chinese character 錢 (qian) which means "money" and
also used as a unit of money in the ancient times. The current won (1962 to
present) is written in hangul only.
First South Korean won
History
The won (원, 圓) was the currency of Korea between 1902 and 1910. It was subdivided into 100 chon (전, 錢).
Won is a cognate of the Chinese yuan and Japanese yen.
The won was introduced in 1902, replacing the yang at a rate of 1 won = 5 yang. In 1909, the Bank of Korea (한국은행; 韓國銀行) was founded in Seoul as a central bank and began issuing currency of a modern type. The won was equivalent to the Japanese yen and was replaced by the Korean yen in 1910 during the Colonial Era. In 1910, the Bank of Korea was renamed the Bank of Joseon (조선은행; 朝鮮銀行), which issued notes denominated in yen and sen.
In 1945
after World War II, Korea became 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 was initially pegged to the U.S. dollar at a rate of 15 won = 1 dollar. A
series of devaluations followed, the later ones in part due to the Korean War.
The first
South Korean won was replaced by the hwan on
February 15, 1953 at a rate of 1 hwan = 100 won. Republic of Korea Banknotes 5th Edition
Banknotes
In 1946, the Bank of Joseon introduced
10 and 100 won notes. These were followed in 1949 by 5 and 1000 won notes.
A new
central bank, the Bank of Korea, was established on 12 June 1950, and assumed
the duties of Bank of Joseon. Notes were introduced (some dated 1949) in
denominations of 5, 10 and 50 jeon, 100 and 1000 won. 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.
Second South Korean Won
History
The won was
reintroduced on June 9, 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
= 1 U.S. dollar. 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. Shortly after, the won was devalued to
almost half of its value, as part of the East Asian financial crisis.
Coins
Until 1966,
10 and 50 Hwan coins, devalued 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 Common era, earlier coins having used the Korean calendar. The 10 and 50 Hwan coins were demonetized on
March 22, 1975.
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 won and 10 won coins were issued in
1970, struck in brass. Cupro-nickel 100 won coins were also introduced that
year, followed by Cupro-nickel 50 won 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 were 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 manufacturing price, then at 38 won per
10 won coin, and rumours that some people had been melting the coins to make
jewellery, the redesign was needed to make the coin more cost effective to
produce. The new coin is made of
copper-coated aluminium with a reduced diameter of 18 mm, and a weight of
1.22 g. Its visual design is the same as the old coin. The new coin was issued on December
18, 2006
The 1 and 5
won coins are difficult to find in circulation today and prices of consumer
goods are rounded to the nearest 10 won.
In 1998, the
production costs per coin were are as follows: 10 won coins each cost 35 won to
produce, 100 won coins cost 58 won, and 500 won coins cost 77 won
The 100 won
coins have exactly the same shape as the U.S. quarter
Banknotes
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. 가, 나, 다, 라, 마, 바, 사. Therefore, ₩1000 issued in 1983 is series II (나) because it
is the second design of all ₩1000 designs since the won introduction 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 were printed in the U.K. 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 litho-printing.
With the
economic development from the 1960s the value of the 500 won notes became
lower, 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 5000 won and 10,000 won were introduced in 1972 and 1973
respectively. The notes incorporated new security features, including watermark, security and ultraviolet response fibres and
were inglio printed. The release
of 10,000 won notes was planned to be at the same time as the 5000 won notes
but problems with the main theme delayed it by a year. Newly designed 500 won
notes were also released in 1973 and the need for a medium denomination
resulted in the introduction of 1000 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 note's 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 printer and the increasing use of
computers and scanners, modified 5000 won 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 5000 and 10,000 won are easily identifiable by the
copyright information inscribed under the watermark: "© 한국은행" and
year of issue on the obverse, "© The Bank of Korea" and year of issue
on the reverse.
The plates
for the 5000 won notes were produced in Japan while the ones for the 1000 and
10,000 won notes were produced by the Korea
Minting and Security Printing Corporation. They were all printed in intaglio.
With the
release of a new set of notes, no plan has yet been made to withdraw these
notes from circulation.
New series
In 2006, it
became a major concern that the Korean won banknotes were being
counterfeited/forged. Notably, around 50% of 5000 won notes (worth about US$5)
were confiscated as counterfeit. This
led the government to issue a new series of banknotes, with the 5000 won note
being the first one to be redesigned. Later in 2007, the 1000 and the 10,000
won note was introduced.
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 5000 won note
17; and the 1000 won note 19. Many modern security features that can be also
found in Euros, Pound sterling, Canadian dollar, and Japanese yen are
included in the banknotes. Some security features inserted in won notes are:
·
Holograms with
3D images that change colors within the metallic foil on the obverse side of
the notes (except ₩1000)
·
Watermark portraits
of the effigy of the note is 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 with small lettering "한국은행 Bank of
Korea" and the denomination
·
Color shifting ink on the value number at the back of the
note
For the
first time in the world, the KOMSCO,
the Korean mint, inserted a new substance in the notes to detect counterfeits.
This technique is being exported to Europe, North America, etc.
1000 won security features
1. Intaglio Latent Image: From the position of, if we look
askance at the note, "WON" appears, thanks to a special intaglio
printing method.
2. Windowed Security Thread: The security thread is a
plastic film with hologram letters. It is exposed at the left side of the
portrait on the obverse regularly.
3. Color-shifting Ink:
4. See-through Register: Patterns are printed in the same
place on both sides of the note. Holding the note up to the light, the shapes
on the obverse and reverse will combine to make a completed Taegeuk.
5. Micro Lettering: Difficult to see the in the naked eye,
but can be discerned with a magnifier. It appears as a line or dotted line when
forged by color printer or color copier.
6. Watermark: Held up to the light, a hidden reverse image
portrait appears in the non-image space on the left side of the obverse, thanks
to the variation in thickness within each note.
7. Special Press and Soldering: Without holding the note up
to the light, the watermark can still be read because of higher differences in
paper thickness.
8. Intaglio Printing: A special method applying ink to a
concave plate. The slightly raised figures produced can be felt.
9. Fluorescent Security Fiber: Fluorescent fibers are inserted
into the paper. Under ultraviolet light, it is possible to see the fluorescent
fibers scattered throughout.
10. Endless Pattern: A printing method inter-linking the
pattern between top and bottom, right and left around the edge of the note.
11. Rainbow Printing: A printing method whereby color
gradients give a rainbow-like effect.
5000 won note security features
1. Hologram (OVD: Optically Variable Device): Changing
designs at different angles. At different angles, "map of Korea,"
"face value number and Taegeuk (the Great Absolute)," and "Four
signs of divination" can be seen.
2. Color Shifting Ink: Depending on the angle, the value
(5000) on the reverse changes between gold and green.
3. Intaglio latent image: From the position of eyes, if we
look askance at the note, "WON" appears, thanks to a special intaglio
printing method.
4. Security Thread: Held up to the light, the banknote shows
microletters within a thin fluorescent plastic film.
5. See-through Register: Patterns are printed in the same
place on both sides of the note. Holding the note up to the light, the shapes
on the obverse and reverse will combine to make a completed Taegeuk.
6. Micro Lettering: Difficult to see with the naked eye, but
can be discerned with a magnifier. It is appeared as a line or dotted line when
forged by color printer or color copier.
7. Watermark: Held up to the light, a hidden reverse image
portrait appears in the non-image space on the left side of the obverse, thanks
to the variation in thickness within each note.
8. Special Press and Soldering: Without holding the note up
to the light, the watermark can still be read because of higher differences in
paper thickness.
9. Watermark Bar: Held up to the light, three horizontal
dark bars and two bright bars appear in turn, thanks to the variation in
thickness within each note.
10. Intaglio Printing: A special method applying ink to a
concave plate. The slightly raised figures produced can be felt.
11. Fluorescent Security Fiber: Fluorescent fibers are
inserted into the paper. Under ultraviolet light, it is possible to see the
fluorescent fibers scattered throughout.
12. Endless Pattern: A printing method inter-linking the
pattern between top and bottom, right and left around the edge of the note.
13. Rainbow Printing: A printing method whereby color
gradients give a rainbow-like effect.
10,000 won security features
1. Hologram (OVD: Optically Variable Device): Changing
designs at different angles. At different angles, "map of Korea,"
"face value number and Taegeuk (the Great Absolute)," and "Four
signs of divination" can be seen.
2. Color Shifting Ink: Depending on the angle, the value
(10000) on the reverse changes between gold and green.
3. Intaglio Latent Image: From the position of eyes, if we
look askance at the note, "WON" appears, thanks to a special intaglio
printing method.
4. Security Thread: Held up to the light, the banknote shows
micro letters within a thin fluorescent plastic film.
5. See-through Register: Patterns are printed in the same
place on both sides of the note. Holding the note up to the light, the shapes
on the obverse and reverse will combine to make a completed Taegeuk.
6. Micro Lettering: Difficult to see with the naked eye, but
can be discerned with a magnifier. It is appeared as a line or dotted line when
forged by color printer or color copier.
7. Watermark: Held up to the light, a hidden reverse image
portrait appears in the non-image space on the left side of the obverse, thanks
to the variation in thickness within each note.
8. Special Press and Soldering: Without holding the note up
to the light, the watermark can still be read because of higher differences in
paper thickness.
9. Watermark Bar: Held up to the light, three horizontal
dark bars and two bright bars appear in turn, thanks to the variation in
thickness within each note.
10. Intaglio Printing: A special method applying ink to a
concave plate. The slightly raised figures produced can be felt.
11. Fluorescent Security Fiber: Fluorescent fibers are
inserted into the paper. Under ultraviolet light, it is possible to see the
fluorescent fibers scattered throughout.
12. Endless Pattern: A printing method inter-linking the
pattern between top and bottom, right and left around the edge of the note.
13. Rainbow Printing: A printing method whereby color
gradients give a rainbow-like effect.
50,000 won security features
1. Holographic strip (Optically Variable Device): The
holographic strip is a special film applied on the left end of the obverse. On
the top, middle and bottom of the strip, are three sets of changing images:
"map of Korea," "taegeuk (two comma roundel)," and
"the four trigrams." When the banknote is tilted, each of them appears
in turn. Between the sets of changing images, the denomination, 50000, is
printed vertically on the strip. On the left top and bottom of the holographic
strip, against a background of geometric guilloche, the words "BANK OF
KOREA 50000" are printed vertically. A line of a Korean traditional
lattice pattern is embossed on the strip's right end.
2. Moving image security thread ("Motion"): The
50,000 won note has a special blue and gray film with numerous Taegeuk patterns
all over it. Taegeuk patterns move to the left and right when the note is
tilted up and down, while moving up and down when the note is tilted to the
left and right. When the note is held up to the light, the movement of the
Taegeuk patterns appears more clearly.
3. Novel numbering: The sizes of the digits (numbers and
letters) used in the serial number increase gradually from left to right.
4. Color-shifting ink: The color of the face value number
(50000) on the top right of the reverse changes between green and magenta when
the note is tilted.
5. Watermark: Held up to the light, a hidden portrait (of
Shin Saimdang), produced by using the variation in thickness of the note paper,
appears in the non-image area on the left side of the obverse.
6. SPAS: Special Press and Soldering: SPAS is a kind of
watermark, produced using the maximized thickness variations in the note paper.
It is located on the right bottom of the watermark and if you hold the banknote
up to a light source or look at it with the naked eye, the number "5"
appears within the pentagon.
7. Intaglio Latent Image: If the note is held horizontally
and tilted at eye level, the number "5" appears within the
intaglio-printed pentagon.
8. Security thread: If the note is held up to the light, the
micro letters "한국은행 BANK OF KOREA 50000" are printed within
a special film hidden on the right side of the portrait.
9. Intaglio Printing: Granular texture can be felt when
touching the portrait of Shin Saimdang, the Wolmaedo painting, letters, five
lines of tactile marks and denomination numbers.
10. See Through Register: When the note is held up to the
light, the round images on the obverse and reverse are combined, appearing as a
two-comma roundel (Taegeuk).
11. Endless Pattern: Exact identical patterns are printed at
the same places in the top and bottom and to the right and left, around the
edges of the note. If the banknote is folded and connected to the top and
bottom or to the right and left, the patterns overlap.
12. Rainbow Printing: To heighten the counterfeiting
deterrent effect, a special printing method for mixing colors naturally in
areas shared by two different colors is employed.
13. Fluorescent Security Ink, Fluorescent Security Fiber:
When the note is illuminated with ultraviolet light, fluorescent green
(security ink) on the grape painting and short fluorescent red, blue and green
lines (fluorescent security fibers) show all over the banknote.
14. Filter Through Latent Image: Through a specially produced
filter, we can observe the hidden face value number "50000" in the
non-image area of the reverse.
15. Micro Lettering: Intaglio-printed micro letters
(consonants of Korean alphabets and "BANK OF KOREA") and
offset-printed micro letters ("50000") can be discerned with a
magnifying glass.
50,000 won note
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 that features the portrait of a woman.
100,000 won note
100,000 won
notes were also announced, but their release was later canceled due to the
controversy over the banknote planned image, featuring the Daedongyeojido map,
not including the disputed Dokdo islands. 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.
Currency production
The Bank of Korea is
the only institution in South Korea that
has the right to print banknotes and
mint coins.
The banknotes and coins are printed at KOMSCO,
a government-owned corporation, under the guidance of the Bank of Korea. After the new crisp banknotes and coins are
printed/minted, they are bundled up in bundles/rolls and shipped to the
Headquarters of the Bank of Korea. When delivered, the banknotes and coins 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 amount 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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