In South Korea, the local won is used as the currency unit . Korean currency in the international classification is designated KRW and consists of ten hwans. It should be noted that at the moment units with a face value of less than one won do not participate in cash circulation. Among the current bills, we can see banknotes in denominations of 50 thousand, 10 thousand, 5 thousand and 1 thousand won. In addition, coins are used in denominations of 500, 100, 50, 10, 5 and 1 won.
The appearance of South Korean won
The history of the Korean currency dates back to the III century BC. Then the banknotes were products in the form of knives. In addition, coins that had the shape of grains were used as payment instruments. In this form, Korean banknotes went until the XI century AD. After that, a transition was made to the production of steel coins. In the next two centuries, silver and copper were also used for the manufacture of monetary units, although their number was limited.
In the IV century, the Chosen dynasty replaced the genus Kore. This happened in 1392. During her reign, a number of attempts were made to reform the monetary structure of Korea. In the XVII century, 24 mints were opened on the territory of the state, the function of which was to make coins from copper and bronze. The official monetary unit in Korea appears in 1633. It becomes mun. At the end of the XIX century, its place is occupied by young, which becomes the first Korean currency related to the decimal monetary system. So, one young man consisted of 100 phoons.
In 1902, a denomination was made in Korea, as a result of which the official Korean currency was won. She was equated to five yangs. In 1909, the Bank of Korea was opened, which was entrusted with the obligation to issue bonds. Unfortunately, Korea was unable to defend its independence, and in 1910 the territory of the country was annexed to Japan. Won was withdrawn from circulation and replaced by the Korean yen in a ratio of 1 to 1.
Money in Korea after World War II
After the surrender of Japan in World War II, hwan becomes the official currency in Korea. The course of the American dollar was then 15 hwan for one dollar. In 1948, as a result of the conflict on the Korean Peninsula, the country was divided into two different states - South and North Korea. The first was in the zone of influence of the United States, and the second - the USSR and China.
It should be noted that even before the division of Korea, the hwan collapsed several times. So, in 1947, the exchange rate of the Korean currency was 50 hwan for the US dollar. A year later, he depreciated another 10 times. One dollar was already worth 450 Korean hwan. In 1949, another round of devaluation took place - 900 hwan for the American dollar. In 1950 - 1800 for 1 dollar. And in 1951, the US currency was estimated at 6,000 hwan.
Return of Won
In 1962, the reorganization of the monetary system was carried out in South Korea. An updated won was returned to circulation, which changed to hwan in the ratio of 1 to 10. Immediately after the end of the monetary reform, one US dollar was worth 125 won. Until 1980, the Bank of Korea set the official value of the Korean currency. At the same time, won did not escape a series of devaluations. So, in the spring of 1964, the US dollar was 255 won for one 1 dollar. In 1972, one US dollar was already worth 400 won. And in the already mentioned 1980 - 500 local currency units.
It should be noted that back in 1997, the South Korean leadership agreed with the IMF to convert the won into a freely convertible currency. From this moment, the value of South Korean money is determined solely by the ratio of supply and demand. It should also be emphasized that the recent depreciation led to a reduction in the price of the won by half. The reason for this was the Asian financial crisis in the late 90s of the last century.
South Korean currency in the Forex market. What is the exchange rate for the ruble?
By the way, it will be said that the South Korean won is one of the popular tools of the Forex currency market and, in addition, not without reason it is an interesting object for investors. The Korean currency against the ruble is traded at a ratio of 1 RUB = 19.13 KRW.
The key to success at the currency exchanges was the rapid development of the South Korean economy in the past three decades. Local production shows constant growth, and at the same time, thanks to the developed high-tech industry, it is export-oriented.