South Korean won

South Korean won
Name	South Korean won
Iso code	KRW
Introduced	1945
Subunit	jeon

South Korean won is the currency of the Republic of Korea used for transactions across Seoul, Busan, Incheon, Daegu and other cities and provinces; it circulates alongside electronic payment systems operated by corporations such as Samsung Electronics, Kakao, Hyundai Motor Company and financial institutions including the Bank of Korea, KB Kookmin Bank, Shinhan Bank and Hana Financial Group. The won functions within markets influenced by trading centers such as the KOSPI, Seoul Stock Exchange, New York Stock Exchange and by policies of regional actors like the People's Bank of China, Bank of Japan and the Federal Reserve System. It appears in legal texts, international agreements and tourism guidance referencing locations such as Jeju Island, Gyeongbokgung, Myeongdong and events like the 1988 Summer Olympics and 2018 Winter Olympics.

History

The won's origins trace to the aftermath of Japanese occupation of Korea and institutions formed during the Korean Peninsula's division, with early currency reforms linked to the Provisional Government of the Republic of Korea and the establishment of the Bank of Joseon and later the Bank of Korea amid the Korean War and postwar reconstruction involving aid from the United States Department of the Treasury, International Monetary Fund and the World Bank. Monetary episodes include decimal reforms, hyperinflation risks influenced by industrialization policies associated with the Miracle on the Han River and stabilization efforts parallel to economic plans like the Five-Year Economic Development Plan and initiatives by conglomerates including Lotte Group, SK Group and LG Corporation. Major changes in convertibility and redenomination discussions intersected with crises such as the 1997 Asian financial crisis and negotiations with the Organisation for Economic Co-operation and Development, the G20 and bilateral partners like Japan and China.

Currency design and denominations

Banknotes and coins exhibit artwork featuring cultural figures, architecture and technology—portraits of historical figures appear alongside depictions of sites such as Seokguram Grotto and Changdeokgung—with denominations aligned to practical use in cities including Busan, Daejeon and Ulsan. Denominations have evolved: coins for everyday retail in markets like Namdaemun Market and notes in circulation used for transactions in sectors represented by Samsung C&T, POSCO and Hyundai Heavy Industries. Design processes involve collaboration among the Bank of Korea, national museums such as the National Museum of Korea and security printers linked to international firms like De La Rue and national institutions such as the Korea Minting and Security Printing Corporation. Artistic choices reference figures tied to culture and scholarship found in works like those by Yi Hwang, Yi I and institutions such as Seoul National University and Korea University.

Issuance and monetary policy

Issuance authority rests with the Bank of Korea, whose governors coordinate with ministries such as the Ministry of Economy and Finance and international organizations including the International Monetary Fund and Asian Development Bank on reserves and liquidity measures. Monetary policy tools—interest-rate decisions, open-market operations and reserve requirements—interact with capital flows involving investors from Goldman Sachs, Mitsubishi UFJ Financial Group and BlackRock and respond to macro indicators tracked by agencies like the Korea Development Institute and reports by the Organisation for Economic Co-operation and Development. Crisis responses have been shaped by cooperation with entities such as the International Monetary Fund during the 1997 Asian financial crisis and swap arrangements with the Federal Reserve System and the People's Bank of China.

Exchange rate and international usage

The won trades on foreign-exchange markets against currencies such as the United States dollar, Japanese yen, euro, Chinese yuan and British pound sterling with quotes and derivatives provided by institutions including the Korea Exchange, Bloomberg, Thomson Reuters and international banks like HSBC and Citigroup. Cross-border trade in goods handled through ports such as Busan Port and logistics firms like CJ Group and Hanjin Shipping reflects won invoicing patterns; tourism from countries including China, Japan, United States and Russia affects demand, while regional agreements and bodies such as the ASEAN and G20 influence capital flows and bilateral swap lines. Offshore won markets, non-deliverable forwards and listings in financial centers like London and Singapore facilitate arbitrage and corporate hedging for multinationals including Samsung Electronics and Hyundai Motor Company.

Counterfeiting and security features

Counterfeiting challenges prompted enhancements coordinated by the Bank of Korea, law enforcement agencies such as the Korean National Police Agency and forensic labs associated with universities like Yonsei University and Korea University, and have involved technologies from security firms linked to De La Rue and other printers. Modern notes incorporate watermarks, holograms, intaglio printing and microprinting, with public education campaigns run by municipal governments of Seoul and Busan and media outlets including Yonhap News Agency and KBS. High-profile seizures and prosecutions have engaged the Supreme Court of Korea and prosecutors' offices, while international cooperation has involved Interpol and central banks like the Bank of England and European Central Bank in sharing best practices.

Commemorative and special issues

Special-issue banknotes and coins have commemorated events such as the 1988 Summer Olympics, 2018 Winter Olympics, anniversaries of national institutions like the National Museum of Korea and milestones for companies like Samsung; limited mintages were produced by the Korea Minting and Security Printing Corporation and sold through banks including KB Kookmin Bank and Shinhan Bank. Collectors' markets and auctions hosted by houses in Seoul and international auctioneers connect with cultural institutions such as the National Folk Museum of Korea and private collections associated with universities like Sogang University and Ewha Womans University.

Category:Economy of South Korea Category:Currencies