The currency of Korea - history and modernity

2024 Author: Howard Calhoun | [email protected]. Last modified: 2023-12-17 10:16

Korea's first currency appeared almost a thousand years ago. The further history of money, as well as the history of the country itself, was very difficult. The names of banknotes were constantly changing here, because Korea was conquered by stronger neighbors - China and Japan, and money could not be introduced into a stable circulation until the 19th century. Koreans for a long time only accepted barter, measuring the value of goods with cloth or rice. If a particularly large transaction was planned, then the settlement was made in silver bars.

The currency of Korea dates back to 998 - the inhabitants of the country then adopted the experience of neighboring China and began to cast coins from a special copper alloy. Each coin weighed only about three grams and cost according to the material spent, that is, very little. In the middle of each money they made a square hole and strung their capital on threads. It happened that such ligaments weighed several kilograms. Only hieroglyphs were depicted on the coins, by which it was possible to understand where and under what ruler this Korean currency was put into circulation.

But this first attempt to establish a commodity-the money circulation in the country ended in failure, and soon the population returned to the usual and reliable natural exchange.

The next currency of Korea appeared only in 1633. And this time everything went well. Gradually, the citizens of the country got used to using banknotes, at the end of the 19th century, coins were no longer cast from copper and strung on threads, but they began to be minted in the usual way. At the same time, the first silver Korean coin with an ornament entered circulation.

And yet the monetary system still could not settle down. Under each new ruler, new money was issued with new names and images. They were similar at different times to Chinese, Japanese and even Mexican coins. And at the beginning of the 20th century, money was generally issued with the image of an eagle, very reminiscent of the Russian one.

In 1910, the country was occupied by the Japanese, so the yen, the Japanese monetary unit, came into circulation. After the Second World War, in 1948, Korea regained its independence, but at the same time it was divided into two states - South and North.

The currency in South Korea first saw the light in 1950, and it was called "hwan". President Lee Syngman was depicted on the banknotes, and in 1953, inscriptions in English and Korean appeared on the banknotes.

Soon, high inflation befell the country, hwans practically depreciated, and it was decided to abandon them. In 1962, a monetary reform was carried out, and new banknotes, the won, entered into circulation, the inscriptions on which began to be applied only in their native Korean.language.

"Won" is the traditional name of the Korean currency, which comes from the Chinese character for "money" - just like the name of the Japanese yen. In fact, "yen" and "won" are the same word, which differs only in pronunciation.

The exchange of hwans for won was based on 10 hwans=1 won. Korea's new currency was pegged to the US dollar: 1 dollar=125 won.

But by the beginning of the 80s, the depreciation of money again occurred, and 1 US dollar began to cost 580 won. In 1997, the country's leadership decided to switch to a floating exchange rate without a rigid peg to the dollar.

The modern currency of South Korea is issued in denominations of 1,000 won, 5,000, 10,000 and finally 50,000 won. The banknotes depict famous philosophers, national heroes, monuments of national architecture - in a word, everything that makes up the cultural heritage of the Korean people.

For 1 US dollar now they give 1090 won. But, despite such a significant devaluation of the currency, the authorities are in no hurry to denominate, so even for everyday purchases, Koreans have to count millions of won. But they have found a way out of this situation, and increasingly they are making payments through bank cards or checks.