What is money called in Korea? Korean currency - history and modernity. Doing Korean Hwana

In South Korea, the local won is used as the currency. The Korean currency in the international classification is designated KRW and consists of ten hwan. It should be noted that at the moment units with a denomination of less than one won are not involved in monetary circulation. Among the current banknotes 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 emergence of the South Korean won

The history of Korean currency dates back to the 3rd century BC. At that time, banknotes were products in the form of knives. In addition, grain-shaped coins were used as payment instruments. Korean banknotes circulated in this form until the 11th century AD. After this, the transition to the production of steel coins was made. In the next two centuries, silver and copper were also used to make monetary units, although their quantity was limited.

In the 4th century, the Chosen dynasty replaced the Goryeo family. This happened in 1392. During her reign, a number of attempts were made to reform the monetary structure of Korea. In the 17th century, 24 mints were opened on the territory of the state, the function of which was to produce coins from copper and bronze. The official currency in Korea appears in 1633. It becomes the moon. At the end of the 19th century, it was replaced by the yang, which became the first Korean currency belonging to the decimal monetary system. So, one yang consisted of 100 phungs.

In 1902, Korea underwent a denomination, as a result of which the won became the official Korean currency. It was equal to five yangs. In 1909, the Bank of Korea was opened, which was entrusted with the responsibility of issuing won. Unfortunately, Korea was unable to defend its independence, and in 1910 the territory of the country was annexed by Japan. The won was withdrawn from circulation and replaced by the Korean yen at a ratio of 1 to 1.

Money in Korea after World War II

After Japan's surrender in World War II, the hwan became the official currency in Korea. The exchange rate of the American dollar at that time was 15 hwan per 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 - of the USSR and China.

It should be noted that even before the division of Korea, the hwan collapsed several times. Thus, in 1947, the Korean currency exchange rate was 50 hwan per US dollar. A year later it depreciated another 10 times. One dollar was already worth 450 Korean hwan. In 1949, another round of devaluation occurred - 900 hwan per US dollar. In 1950 - 1800 for 1 dollar. And in 1951, the US currency was already valued at 6,000 hwan.

Return of the won to circulation

In 1962, a reorganization of the monetary system was carried out in South Korea. The updated won was returned to circulation, which was exchanged for hwan in a ratio of 1 to 10. Immediately after the end of the monetary reform, one American dollar was worth 125 won. Until 1980, the Bank of Korea set the official value of the Korean currency. At the same time, the won did not escape a series of devaluations. Thus, in the spring of 1964, the US dollar exchange rate was 255 won per 1 dollar. In 1972, one American 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 transform the won into a freely convertible currency. From now on, the value of South Korean money is determined solely by the relationship between supply and demand. It should also be emphasized that the latest depreciation has resulted in the won being halved in value. The reason for this was the Asian financial crisis in the late 90s of the last century.

South Korean currency on the Forex market. What is the won to ruble exchange rate?

It would be appropriate to say that the South Korean won is one of the popular instruments of the Forex currency market and, moreover, not without reason, is an interesting object for investors. The Korean currency against the ruble is traded at the ratio of 1 RUB = 19.13 KRW.

The key to the won's success on the currency exchanges has been the rapid development of the South Korean economy over 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.

An inquisitive tourist will certainly be interested in learning a few facts about the national currency of South Korea. So, the currency of South Korea, as a monetary unit, first saw the light of day in 1950, after the country was liberated from Japanese rule.

Korea's first national currency, the hwana, was printed at that time with the image of Seung-Man Rhee and a large number of Chinese characters, sometimes even with inscriptions in English. But it did not exist in this form for long, until 1962; they stopped producing it as a cut after the overthrow of the first president.

The current current currency of South Korea is the “Won” KRW, 1000 won = $0.91, or 1 ruble is 19.42 won. Practice shows that any printed money is imperfect, and the same applies to the South Korean currency. So in 2006, half of the 5,000 won banknotes were counterfeit, which actually led to significant measures to suppress counterfeit money in the country. Therefore, to the question “what is the currency in Korea?” - many bankers answer that it is one of the most protected in the world, for example, like the euro or the Canadian dollar.

In 2003, the National Bank of Korea began issuing the country's first currency, with a face value of 50,000 won, featuring a woman. This honor was given to the famous calligraphist Shin Saimdan.

Foreign exchange turnover in the country

The most common South Korean banknotes are in denominations of one thousand, five, ten and fifty thousand won. Ordinary citizens simply call it “chon,” which translates to a thousand. In most large hotels and inns you can exchange currency, this does not include banks and exchangers. The working hours of such institutions are standard - from 9.30 to 16.30 on weekdays, and until 13.30 on weekends. ATMs are open either 24 hours a day or until ten o'clock in the evening.

In addition, in small shops and markets you can easily pay in dollars, but in large shopping centers or department stores this option is practically impossible.

Tax refund

Starting from April 1, 2014, tourists can receive a tax refund for hotel stays. However, not all hotels participate in this process, so you should ask about this in advance.

If a tourist spent more than 2 nights at the hotel, but less than 30, he will be refunded VAT in cash. In order to receive such a payment, you need a certificate of hotel accommodation in 2 copies, which should be submitted no later than 3 months to the Tax Refund window before departure from the airport, or at another checkpoint.

The South Korean won has been the national currency of South Korea since 1962. In Russian, the hieroglyphs denoting this currency are translated as “Won Currency” and sound like “Wonhwa”.

South Korean won denomination

The monetary equivalent of Korea is as follows:

Paper banknotes;
Coins.

Banknotes are issued in 1000, 5000, 10,000 and 50,000 won. Coins are presented in the form of 1, 5, 10, 50, 100, and 500 won.

1 and 5 won coins are considered rare. To solve the problem, South Korea allows you to round up to the nearest 10 won. Soon these won will go out of circulation altogether, since they are no longer needed. And they only interfere with calculations.

South Korean money. Story

Until the 19th century, barter in kind prevailed in Korean markets. Banknotes appeared and disappeared. Rice and pieces of fabric were used for barter.

During large trade transactions, eastern merchants paid in silver. For convenience, they used silver bars. Afterwards, this state adopted the experience of its Chinese neighbors, because in China coins have been in circulation since the first millennium BC.

Coins in South Korea were originally copper and three-gram coins. They had a square hole in the middle. On the sides there were hieroglyphs indicating belonging to the country. These coins cost the same as they weighed. For transportation, they were strung on a thread, and when calculated, beads made from coins weighed quite impressively.

The people of Korea did not appreciate the innovation. Soon, all townspeople and villagers returned to their usual natural exchange. In 1633, coins were reintroduced, but now they were minted from silver, giving the products real value.

Despite the fact that the new money took root in society, it was still constantly changed. South Korea has a long history of borrowing money from Mexico, Japan and China.

In the 20th century, money with an eagle engraving was in circulation. They were often compared to Russian rubles. After the end of Japan's colonial takeover, the Korean central bank printed the first banknotes featuring the current president, Syngman Rhee.

After the reform in 1953, people used coins with English and Korean symbols to pay. They were called "khwans". Then in 1962 the entire currency was converted into the current current format. Now it only has inscriptions in Korean. The name “won” itself originates from ancient Chinese characters for money. The same sign is pronounced differently in China and South Korea.

What is depicted on Korean money today?

On banknotes you can see images of famous philosophers, heroes of the nation, great educators. There are also architectural monuments depicted there. Banknotes are identified with the national symbols of the country.

Where can I exchange Korean money?

There are exchange offices in all megacities that accept clients from 9 a.m. to 5 p.m. They change won in hotels and large stores. The best rate can be found in the exchange office, and less favorable offers in all other places.

They are more willing to exchange dollars, but other currencies are also converted into won. In Korea, changing money is not a problem. But outside of it, doing this is quite problematic. Therefore, tourists are advised to change the won back before heading home.

South Korean money: exchange rate to ruble

At the end of 2017 The exchange rate of the South Korean won to the Russian ruble is 0.052 rubles per 1 won or 1000 won for 52.4 rubles. For comparison, one US dollar is equal to 1,115 won.

KRW and code 410. The name of the South Korean won comes from a union of hieroglyphs, which is pronounced won(hu)a and translated means won currency.

History of the South Korean currency

The history of the won dates back to 1950 after Korea's secession 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 first won banknotes featured a portrait of the first President of the Republic of Korea, Lee Seung-Mann, who at that time was the current leader of the state. His image remained on the won banknotes until April 1960. That is, until the very moment when he was overthrown during the “student revolution”.

The Korean won of the First Republic period is distinguished by the presence of a significant amount of hieroglyphics on banknotes. Chinese characters were mainly used to write words on banknotes of that time. Over time, inscriptions in Korean began to appear on banknotes. At the same time, from time to time, texts in English could be found on South Korean money.

South Korean coins

The coins in circulation are in denominations of one, five, ten, fifty and one hundred won. The first two are quite rare, so when making trading transactions, rounding the calculation to the nearest ten won is allowed.

On June 12, 1982, 500 won coins were introduced into circulation. There were two reasons for this decision. Firstly, the high level of inflation, and secondly, the rapid spread and growth in popularity of vending machines. Just 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 retained the theme of the obverse and reverse of the old coins. This move allowed the South Korean coinage system to be standardized.

South Korean banknotes

The Korean won is in denominations of one thousand, five thousand, ten thousand and fifty thousand. In addition to banknotes, bank checks of one hundred thousand won or more are used for transactions. It should be emphasized that when using such a check, the owner's passport number, as well as an address and telephone number in the Republic of Korea, must be indicated on its reverse side.

regarding the won and its exchange rate

The foreign exchange policy of the South Korean leadership led to the need to switch to a floating exchange rate of the Korean won. These aspirations started 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. However, some time later, a major financial crisis occurred in Asia, as a result of which the Korean won was devalued by almost half.

The Bank of Korea is responsible for issuing currency in the republic. Interestingly, one of the main problems of this country's main financial regulator is the high level of counterfeiting. So, in 2006, this scourge acquired alarming proportions. For example, 50% of the five thousand won bills (the exchange rate of the Korean won to the dollar was then approximately 1000 to 1) were counterfeit.

This state of affairs forced the state government to introduce a new series of paper money into circulation. First of all, it was the most “popular” five thousand won banknote that was changed. In 2007, banknotes in denominations of one thousand won and ten thousand won were additionally introduced into circulation. These new banknotes have ten security mechanisms. The updated Korean won contains the same anti-counterfeiting features as some other British pound sterling, and

On June 23, 2009, the Bank of Korea introduced the fifty thousand won banknote into circulation. On the obverse of the banknote you can see the image of the famous 16th century Korean artist Sin Saimdang, who was also the mother of the Confucian scholar Yi Yi, who became known under the fictitious name Yulgok. The fifty thousand won banknote is the first South Korean banknote to include the image of a woman. In addition, to select the person who will be awarded this honor, a sociological survey was conducted among the country's population.

At the moment, the Republic of Korea has the 11th GDP in the world in nominal terms. In recent years, the national currency of this country has been quite stable. The Korean won to ruble exchange rate is 19.46 to 1.

If you're planning to visit South Korea, you'll definitely want to understand the local currency. Of course, the first thing you need to know is the exchange rate. But history is also important. After all, during your travel you will constantly deal with Korean banknotes and every time you will see the same faces on them. And like any self-respecting tourist, you should definitely learn a little more about the people whose faces adorn Korean money.

Briefly about the main thing

Name: South Korean won.
Designation: ₩.
Currency code: KRW.
Denomination (banknotes): 1000₩. 5000₩, 10000₩, 50000₩.
Denomination (coins): 10₩, 50₩, 100₩, 500₩.
Country's central bank: Bank of Korea.
Korean won to euro: 1000₩ = 0.81€.
To the dollar: 1000₩ = $0.88.
To the ruble: 1000₩ = 50.02 rubles.

Story

The won has been used as a currency for thousands of years. However, from 1910 to 1945, Korea was a Japanese colony and Japanese currency (yen) was used in the country.

In 1945, after World War II, the country split into South and North Korea. At the same time, a new currency was introduced - the won.

Initially, the Korean won was pegged to the US dollar at the rate of 15₩=1$. A series of devaluations followed, some of which were related to the Korean War.

By 1951, the won had depreciated to 6,000 won per dollar. In an attempt to solve this problem, a new currency, the hwan, was introduced in 1953, with a rate of 1 to 100 against the won.

Until 1962, the currency of South Korea was the hwang. Korean money then became the won again, and a long process began to move toward a floating exchange rate.

Despite some shocks, the exchange rate remains relatively stable and effective.

1000 won - thinker Lee Hwan (1501-1570)

The front side of the banknote depicts the outstanding Korean scientist of the Joseon Dynasty, Lee Hwan. He had incredible mental abilities and was the author of many books on Confucianism. He was also extremely talented in calligraphy and poetry. Lee Hwan is a prominent politician of the time. During his forty-year career, he faithfully served four monarchs of the Joseon era.

The back of the note shows a private Confucian academy founded by Lee Hwang.

5000 won - politician Li Yi (1536-1584)

Lee Yi is a respected politician and one of two famous Confucian scholars, a student of Lee Hwang (the man depicted on the 1000 banknote). He was incredibly smart: he could already read at the age of 3, and by the age of 7 he had finished learning the basics of Neo-Confucianism. At the age of 13, he passed the civil service exam, and at 16, after the death of his mother, Shin Saimdan (depicted at 50,000 won), he decided to devote his life to the study of Buddhism.

10,000 won - King Sejong the Great (1397-1450)

King Sejong is called great for a reason. This historical figure is known to every resident of the country, and it is not for nothing that his portrait adorns Korean money. It was this king who is considered the creator of Hangeul - the Korean alphabet. During his reign, he contributed to the significant advancement of the country not only in literature, but also in science, military and technology. His statue, located in front of Gyeongbokgung Palace, is one of the must-see attractions in Seoul.

On the back of the banknote you can see 3 inventions of the great ruler (by the way, bronze copies of them are also located next to the statue of King Sejong): a globe, a rain gauge and a sundial.

50,000 won - artist Shin Saimdan (1504-1551)

Sin Saimdan is a famous artist, calligrapher, poet and writer. She is the first woman to appear on a South Korean banknote.

She became famous as a good wife and wise mother, and also accomplished many things that women of that time could only dream of. For example, Sin had no brothers, so she acted as the eldest son for her parents. To a certain extent, she can be considered a feminist, because Saimdan was able to get an education, which in those days was considered the prerogative of men.

The reverse side of the banknote depicts a Japanese plum tree, one of the artist’s favorite plants.

Coins

Today it is extremely rare to find coins in denominations of 1 and 5 won, but until recently they were actively used. Depending on the denomination, the “eagle” looks like:

10 won - Tabothap Pagoda, known as the Pagoda of Many Treasures at Bulguksa Temple;
50 won - rice flower;
100 won - portrait of Lee Susin - Korean fleet commander;
500 won - Turumi - flying red-headed crane.

Korean money is quite easy to distinguish: banknotes are distinguished by color and size, coins by size. Just like the money of many other countries, they are imbued with a hidden meaning for local residents, and for tourists they can become a good souvenir if they suddenly do not have enough time to buy magnets.