South Korean Won

• Country: South Korea
• Currency: Won
• Alias: South Korean won
• ISO 4217 CODES: KRW/410
• Symbol: W

The won is the national currency of the Republic of Korea, also known as South Korea. Since the signing of the 1953 armistice that ended the Korean War, South Korea has grown much more rapidly than North Korea, and its highly industrialized economy is now the 10th largest in the world. As a result, its citizens enjoy an excellent standard of living. South Korea’ democratic government has fostered positive relations with the Western world, promoting significant foreign investment and helping to maintain the stability of the won through a relatively moderate inflation rate.

Background of the Korean Won

Korea had been a unified country in principle until the end of World War II, when occupying Japanese troops were forced out, and the peninsula was divided at the 38th parallel. Two separate governments were created in 1948, ultimately leading to a 3-year war between the north and south that began in 1950. Relations between the two nations have been strained since the signing of the 1953 armistice, though the leaders of the two nations did meet during a summit in 2000.

Both North and South Korean utilize currencies that are named “won,” but the two currencies are not interchangeable. The present South Korean won is the remnant of several currency reforms that have taken place since 1950. The Bank of Korea is responsible for all monetary policy and for the issuance of banknotes and coins. For many years, the 500 won note had been the largest banknote denomination in circulation. Tremendous economic growth during the 1960s combined with increasing price levels forced the Bank of Korea to add larger denominations. A 1,000 won banknote was introduced before the decade came to a close. Later, a 5,000 won banknote was introduced in 1972, and a 10,000 won banknote was introduced in 1973.

In spite of the Asian financial crisis of the late 1990s, South Korea’s economy remains one of the strongest worldwide. The country’s manufacturing prowess and propensity for technological innovation are well-known internationally, and brands such as Hyundai, Samsung, Daewoo and LG have become household names in many western countries.

The South Korean won is divided into 100 chon, however the smallest denomination of coin is one won, and most consumer prices are rounded in increments of 10 won. Denominations for coins are W1, W5, W10, 50W, 100W, and 500W. Denominations for banknotes are 1,000W, 5,000W and 10,000W.