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| Korean won | |
|---|---|
| Name | Korean won |
| Iso code | KRW (South Korea), KPW (North Korea) |
| Used in | South Korea, North Korea |
| Inflation rate | varies |
| Subdiv | 100 haecho (obsolete) |
Korean won The Korean won is the currency historically and currently used on the Korean Peninsula, issued in distinct modern forms by Bank of Korea (South Korea), Central Bank of the Democratic People's Republic of Korea, and earlier authorities. It has been central to fiscal episodes involving Joseon dynasty, Korean Empire, Japanese occupation of Korea, Provisional Government of the Republic of Korea, United States Army Military Government in Korea, Republic of Korea, and Democratic People's Republic of Korea administrations. Major regional and global institutions such as the International Monetary Fund, World Bank, Asian Development Bank, Bank for International Settlements and trading partners like United States, China, Japan, European Union influence its valuation and policy.
The term "won" derives from the Sino-Korean reading of the same character used in yuan (Chinese currency), yen, and historical won variants employed under the Korean Empire and Joseon dynasty monetary experiments. Historical naming parallels include Spanish dollar-era influences through East Asian trade, and lexemes shared with Mongolian tögrög and Manchu coinage traditions. Symbols and abbreviations reflect international standards set by International Organization for Standardization and conventions used by SWIFT and ISO 4217 constituents.
Korean coinage traditions predate modern won, with earlier media such as Bujeon coins, mun coins, and sangpyeong tongbo used during the Joseon dynasty. The modern won emerged during the Korean Empire reforms and was later replaced by the Japanese yen during the Japanese occupation of Korea (1910–1945). After World War II, occupying authorities including the Soviet Union and the United States implemented separate monetary controls leading to disparate currencies in the North and South; the South introduced the won under the United States Army Military Government in Korea and later reforms by the Bank of Korea (South Korea), while the North issued its won under institutions tied to the Workers' Party of Korea and Central Banking System of North Korea. Notable crises affecting the won include postwar hyperinflation episodes during the Korean War, stabilization under Park Chung-hee policies, the 1997–1998 Asian financial crisis and interventions coordinated with the International Monetary Fund, and later adjustments influenced by trade agreements such as Korea–United States Free Trade Agreement and China–South Korea relations.
Banknotes and coins issued by South Korean authorities feature historical figures like Sejong the Great, Yi Sun-sin, and cultural motifs referencing Hangul, Goryeo celadon, and Joseon white porcelain, while North Korean notes bear iconography of Kim Il-sung, Kim Jong-il, and revolutionary imagery tied to the Korean War. Notable denominations include low-value coins historically based on the haecho subdivision and modern banknotes in values used for daily transactions and high-value notes for large settlements. Design evolution reflects influences from German banknote printers, Thomas de la Rue, and security collaborations with firms linked to the Bank for International Settlements network. Commemorative issues have celebrated events like the 1988 Summer Olympics in Seoul, diplomatic milestones with United States–South Korea relations, and economic achievements during administrations of figures such as Kim Dae-jung and Lee Myung-bak.
Issuance in South Korea is managed by the Bank of Korea (South Korea), which conducts open market operations, sets policy rates, and interacts with institutions including the Ministry of Economy and Finance (South Korea), Korea Deposit Insurance Corporation, and foreign central banks. North Korea’s issuance is controlled by the Central Bank of the Democratic People's Republic of Korea under directives from the Workers' Party of Korea and planning bodies. Policy tools have evolved from fixed-exchange regimes influenced by Bretton Woods system participants to managed floats and inflation-targeting frameworks advocated by International Monetary Fund missions. Crisis responses have involved swap lines with Federal Reserve System-linked correspondents, bilateral currency agreements with People's Bank of China, and capital controls coordinated with agencies like the Financial Services Commission (South Korea).
The won’s exchange rate against the United States dollar, Chinese yuan, Japanese yen, and euro is monitored by international markets and institutions including Bloomberg, Reuters, NASDAQ, and London Stock Exchange participants. South Korea maintains substantial foreign exchange reserves held by the Bank of Korea (South Korea) and intervenes to stabilize trade flows with major partners such as Samsung Electronics, Hyundai Motor Company, POSCO, LG Corporation, and Korean Air. North Korea’s won is largely nonconvertible internationally, with trade settled in US dollar, Chinese yuan, Russian ruble, and barter arrangements involving entities like Korean People's Army-linked trading companies. Tourism flows involving Jeju Island, Seoul, Pyongyang, and the DMZ affect currency demand and informal exchange markets.
Counterfeiting challenges have prompted technical responses including advanced intaglio printing, holographic patches, watermarks, security threads, color-shifting inks, and tactile features developed with firms and research centers linked to International Organization for Standardization standards and collaborations with printing houses formerly servicing Bank of England and United States Bureau of Engraving and Printing. Enforcement involves coordination among Korean National Police Agency, Supreme Prosecutors' Office of the Republic of Korea, Interpol, United States Secret Service liaison offices, and customs agencies. Historical counterfeit incidents have led to legislative responses from bodies like the National Assembly (South Korea) and asset seizures by agencies such as the Financial Intelligence Unit.
The won features in popular culture via references in K-pop, K-drama, cinema by directors like Bong Joon-ho and Park Chan-wook, and literature reflecting urban life in Seoul and rural narratives tied to Jeju Island or the Han River. Economic symbolism appears in corporate histories of Samsung Group, Hyundai Motor Company, SK Group, Lotte Corporation, and financial histories of institutions like Korea Exchange, Korea Development Bank, and Industrial Bank of Korea. Monetary themes recur in policy debates involving presidents such as Rhee Syngman, Syngman Rhee (alternate romanization contexts), Roh Tae-woo, and Moon Jae-in, and in international negotiations with actors from United States, China, Japan, and Russia. The won remains a focal point for scholars at institutions like Seoul National University, Korea University, Yonsei University, Korea Institute for International Economic Policy, and think tanks including Korea Institute for Monetary and Economic Research.