Won is the official currency of the Republic of Korea. This currency has a designation in the international financial system KRW and code 410. The name of the South Korean won comes from the union of hieroglyphs, which is pronounced won (hu) and in translation means the currency Won.
History of South Korean Currency
The history of won dates back to 1950 after the secession of Korea from Japan and the creation of two new states on this territory: the Republic of Korea in the south and the Democratic People's Republic of Korea in the north. The portrait of the first President of the Republic of Korea, Lee Seung Mann, who at that time was the current head of state, was printed on the first banknote. His image remained on won notes until April 1960. That is, until the very moment when he was overthrown during the "student revolution."
Korean Won of the period of the First Republic is distinguished by the presence on the banknotes of a significant amount of hieroglyphics. For writing words on banknotes of that time, mainly Chinese characters were used. Over time, Korean notes began to appear on the banknotes. At the same time, periodically on South Korean money it was possible to meet texts in English.
South Korean coins
In circulation are coins of one, five, ten, fifty and one hundred won denominations. The first two are rare enough, therefore, when making trading operations, rounding up to ten won is allowed.
On June 12, 1982, coins of 500 won were put into circulation. The reason for this decision was two reasons. Firstly, high inflation, and secondly, the rapid spread and growth of the popularity of vending machines. Six months later, in January 1983, a new series of coins saw the light: one, five, ten, fifty and one hundred won. These coins were made in the same style as the five hundred won coin, but the theme of obverse and reverse of old copies was preserved. This step allowed us to standardize the South Korean monetary system.
South Korean banknotes
In circulation is the Korean won in denominations of a thousand, five thousand, ten thousand and fifty thousand. In addition to banknotes, bank checks with a value of one hundred thousand won or more are used for transactions. It should be emphasized that when using such a check on its reverse side, it is necessary to indicate the passport number of the holder, as well as the address and telephone number in the Republic of Korea.
Currency policy regarding won and its course
The foreign exchange policy of the South Korean leadership has led to the need to switch to the floating Korean Won exchange rate. These aspirations were launched on February 27, 1980, and the final transition to the free value of the South Korean currency took place on December 24, 1997. On this day, an agreement was reached between the leadership of the Republic of Korea and the International Monetary Fund. Nevertheless, after some time, a major financial crisis occurred in Asia, as a result of which the Korean won almost doubled.
The Bank of Korea is engaged in the issue of currency in the republic. It is curious that one of the main problems of this main financial regulator of the country is the high level of counterfeiting. So, in 2006, this misfortune even acquired threatening proportions. For example, 50% of the number of notes in denominations of five thousand won (the Korean won to dollar exchange rate was then approximately 1000 to 1) were false.
This state of affairs forced the government to put into circulation a new series of paper money. First of all, it was precisely the most “popular” banknote of five thousand won. In 2007, banknotes of one thousand won and ten thousand won were additionally put into circulation. These new banknotes have ten defense mechanisms. The updated Korean won contains the same anti-counterfeiting features as some other currencies: the euro, the British pound, the Canadian dollar and the Japanese yen.
On June 23, 2009, the Bank of Korea issued a bill in denomination of fifty thousand won. On the obverse of the bill, you can see the image of the famous Korean artist of the 16th century Sin Saimdang, who was also the mother of the Confucian scientist Yi Yi, who became known under the assumed name of Yulgok. The fifty thousand won banknote is the first South Korean bill to which the image of a woman is placed. In addition, a sociological survey was conducted among the country's population to select a person who would be awarded such an honor.
At the moment, the Republic of Korea has 11th GDP in the world in nominal terms. In recent years, the national currency of this country is quite stable. Korean won to ruble exchange rate is 19.46 to 1.