Korean Job Discussion Forums

[wylies99]

100,000-won banknote issue postponed

http://www.koreaherald.co.kr/NEWKHSITE/data/html_dir/2008/12/18/200812180026.asp

The government looks set to put off its plan to issue a new 100,000 won banknote originally scheduled to go into circulation next year.

"We will make it official soon," a Finance Ministry official said, adding that the ministry`s stance does not differ from what Finance Minister Kang Man-soo said in October.

Kang told lawmakers that he doubted whether the country really needs 100,000-won bills, particularly in this difficult economic time.

"New 50,000-won notes should be sufficient to meet the need for higher-denomination bills," he said.

The ministry confirmed yesterday that the 50,000-won note plan is going ahead and the new banknotes will go into circulation in the first half of next year.

Central bank officials, lawmakers as well as the general public are bewildered to find the long-debated plan stalled with much of the preparatory work already done.

"High-denomination banknotes were being prepared for circulation, following the National Assembly`s passage of a motion supporting the issuance. It is absurd for the government to defer the plan without a convincing reason," said Rep. Choi Kyoung-hwan of the ruling Grand National Party.

The Bank of Korea`s Monetary Policy Committee has already endorsed the issuance of the new bills. So if the government formally informs the central bank of its decision, the committee will have to endorse the postponement, too.

Central bank officials said they have stopped all preparatory work for the 100,000-won bills since September, upon the request of the Finance Ministry, but have not heard the reason why.

The currency denomination has been a subject of political and economic controversy, with monetary authorities pushing for redenomination and the issuance of high-value bills. The highest denomination currently circulated in Korea is 10,000 won, worth $7.5 at the current exchange rate.

The government decided in 2007 to issue early next year two new high-value bills -- worth 50,000 won and 100,000 won -- and last year picked an independence leader, Kim Koo, and a female writer and painter from the Joseon Dynasty, Shin Saimdang, as the faces to grace the new bills.

An unexpected controversy erupted when authorities moved to put an ancient map of Korea on the back of the 100,000 won bill.

The problem was that the 1861 Grand Map of Korea, or "Daedong Yeojido," does not include Dokdo, a set of rocky islets in the East Sea. Japan often disputes Korea`s sovereign right to the islets.

Faced with public criticism, the BOK has said that it will consider putting the islets on the map, but this time experts opposed it, calling it a manipulation of the historical map.

By Lee Sun-young


([email protected])






2008.12.18

[wylies99]

[Troll_Bait]

[CentralCali]

[Milwaukiedave]

Go figure! I kind of doubted they were going to put out 100,000 won notes anyway. At least they will have the 50,000 won notes. Carrying around any amount of cash is a pain in the ass here with such low denominations of money.

[Smee]

The Liancourt Rocks issue is lame, but if they care so much about it why not just scrap the map and put a sketch of the rocks on the back?

(That's my idea, don't steal it.)

[bassexpander]

[cangel]

Unbelievable... Even Korea's own banknotes can't overcome their ridiculous Dok insecurities.

[Milwaukiedave]

legalquestions,

I knew that was the main reason they have been reluctant to issue larger bills, however, I don't buy into the notion it will reduce corruption. If someone wants to bribe a person, they are going to find a way to do it regardless of how many 10,000 won notes it takes.

[legalquestions]

Yeah, like "borrowed name" bank accounts. What a bunch of amateur criminals, huh? That is how they usually get caught - having the bribe money deposited into accounts they set up in their family members and trusted friends names. Haha, what a bunch of amateurs!

[legalquestions]

Yeah, like "borrowed name" bank accounts. What a bunch of amateur criminals, huh? That is how they usually get caught - having the bribe money deposited into accounts they set up in their family members and trusted friends names. Haha, what a bunch of amateurs!

[Kimsmith]

Even if the 100,000won bill is delayed, it'll be great to have the 50,000. I might be able to close my wallet after a big withdrawal!

[madoka]

legalquestions, when did you decide to become such a racist troll? You were more tolerable when you just asked questions about finding cheap Viagra.

You claimed you came back to Korea after having a $200,000 a year job as a lawyer in America. If you think Koreans are so dishonest, why did you choose to come back? Why do you stay here?

[D.D.]

When I get a big win at the casino I kind of like all those 10000 notes. Closing the wallet is not that easy though.

[Louie]

Do you think the introduction of large denominations will introduce Korea to inflation on the scale seen in many other places?
I mean, someday it will take 5000won to equal the US dollar, making a 50,000won note worth only $10 at that time....causing prices to inflate along those lines.......we'll see...

Personally, I think it would be better to deflate the currency and drop all those unnecessary zeroes in it.....instead of circulating a 50,000, devalue the currency by about 3 zeroes and start circulating 1,5,10, and 50 won notes and bring back the jeon for coins