New 50,000 won banknote goes into circulation

By Yoo Cheong-mo
SEOUL, June 23 (Yonhap) -- The new 50,000 won banknote worth about US$40 was
released into circulation across the nation Tuesday, amid South Korean citizens'
feverish interest in the nation's highest-denomination bill.

Citizens from all walks of life rushed to bank branches from early in the morning
to get their hands on the new banknote, the first issuance of new paper currency
since 1973, when the 10,000 won note was introduced.
Until this week, the 10,000 won note had been the highest-denominated bill,
followed by denominations of 5,000 won and 1,000 won. Consumer prices and the
gross national income have jumped 12-fold and 150-fold, respectively, since the
10,000 won note was introduced 36 years ago.
Despite sizzling summer heat, hundreds of citizens stood in line for hours in
front of the headquarters of the Bank of Korea (BOK), the central bank, early
Tuesday morning to obtain the new bills.
"I came here along with my friends to exchange my money into the new 50,000 won
bills with early serial numbers. I'll give them to my grandsons and daughters as
gifts," said Koh Doo-seung, a 67-year-old man living in Seoul.
Another citizen named Kim Hyung-jun, 58, who secured the newly issued banknotes
after waiting hours in front of a commercial bank in downtown Seoul, said, "I'm
disappointed to fail to get early serial numbers, but I'm still happy to obtain
the new bills. I'll give them to my family."
The front of the yellow-toned banknote features Shin Saimdang (1504-1551), a
renowned female writer and calligrapher of the 16th century, whom South Koreans
uphold as the paragon of a wise mother and good wife.
She was also famous for being the mother of the Confucian scholar Yi I, also
known as Yulgok (1536-1584), who appears on the 5,000 won note. Shin is the first
woman to appear on a Korean banknote.
Some economists and civic activists are warning that the circulation of the
50,000 won bills may trigger inflationary jitters. They also argue there is a
possibility of the new banknote being misused by criminals and corrupt officials
for the purpose of bribery and money laundering. Currently, people who use South
Korean bank checks worth 100,000 won can easily be traced.
But BOK officials forecast that the 50,000 won notes will help reduce social and
economic costs associated with the circulation of only small-denominated bills,
particularly in consideration of the nation's giant strides in economic power
over the past decades. Retailers are also hopeful that the introduction of the
higher-value notes will encourage consumers to spend more.
According to the central bank's press release, a total of 1.64 trillion won in
50,000 won bills was released from the BOK and commercial banks nationwide on
Tuesday alone.
"The volume of newly released 50,000 won bills exceeded our expectations, due to
the people's strong interest in the new banknotes," said Chung Sang-deok, a BOK
official.
ycm@yna.co.kr
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