The Korean people's won (symbol: ₩; code: KPW; ), more commonly known as the North Korean won (; known as in South Korea) and sometimes known as the Democratic People's Republic of Korea won (), is the official currency of North Korea.
Each won () is technically subdivided into 100 chon (), but chon-denominated coins are now rarely used due to inflation. The currency is issued by the Central Bank of the Democratic People's Republic of Korea, which produces both coins and banknotes; it is based in the capital city of Pyongyang. The won has been issued since 1947, and has been the only currency issued in North Korea since.
Etymology
Won, like Japanese yen, is borrowed from Chinese yuan (written as in hanja; and in hangul). It means "round shape".
History
1947–2009 After the division of Korea, North Korea continued using the Korean yen for two years, until the Central Bank of the Democratic People's Republic of Korea was established on 6 December 1947 and the first North Korean won was issued. In February 1959, the second North Korean won was introduced, equal to 100 old won.
From 1978 onwards, the North Korean government maintained a rate of ₩2.16 to each US dollar, which may have been based upon Kim Jong Il's birthday, February 16. Over the decades, however, rampant inflation eroded the currency's value, and from 2001 the government abandoned the rate in favor of those closer to the black market's. A report by defectors from North Korea claimed the black market rate was ₩570 to each Chinese yuan (about ₩4,000 per US dollar) in June 2009.Yong, Lee Sang (24 June 2009). The Color of North Korean Money. Daily NK.
2009 revaluation
The third North Korean won was introduced in a revaluation ,Ho, Jung Kwon (30 November 2009). North Korea Replaces Currency . Daily NK. the first in 50 years.The Wall Street Journal, Wednesday 2 December 2009 North Korea Reissues Won, a Blow to Unofficial EconomyThe Wall Street Journal, Thursday 3 December 2009 North Korea Begins Won Swap, Curfew North Koreans were given seven days to exchange a maximum of ₩100,000 (worth approximately US$40 on the black market) in ₩1,000 notes for ₩10 notes, but after protests by some of the populace, the limit was raised to ₩150,000 in cash and ₩300,000 in bank savings.Harden, Blaine (2 December 2009). 'North Korea revalues currency, destroying personal savings'. The Washington Post. The official exchange rate at this time was around $740, but black market value of the ₩150,000 was estimated to be near $30.Haggard, Stephen and Marcus Noland (January 2009). . The revaluation, seen as a move against private market activity, wiped out many North Koreans' savings. The Times speculated that the move may have been an attempt by the North Korean government to control price inflation and destroy the fortunes of local black market money traders. The announcement was made to foreign embassies but not in North Korean state media.Parry, Richard Lloyd (2 December 2009). North Koreans in shock as cash is 'banned'. The Times.
As part of the process, the old notes ceased to be legal tender on 30 November 2009, but notes valued in the new won were not distributed until 7 December 2009. North Koreans were thus unable to exchange any money for goods or services for a week, and most shops, restaurants and transport services were shut down. The only services that remained open were those catering to the political elite and foreigners who both continued to trade exclusively in foreign currency. The measure led to concerns amongst North Korean officials that the move would result in civil unrest. China's Xinhua News Agency described North Korean citizens as being in a "collective panic";North's currency action shocking to its citizens. Joongang Daily. 3 December 2009. army bases were put on alert and there were unconfirmed reports of public protests in the streets in a handful of North Korean cities and towns, forcing authorities to slightly increase the amount of currency people were allowed to exchange. Piles of old bills were also set on fire in separate locations across the country, old paper notes were dumped in a stream (against laws of the desecration of images of Kim Il Sung), and two black market traders were shot dead in the streets of Pyongsong by local police, according to international reports. Authorities threatened "merciless punishment" for any person violating the rules of the currency change.
Pictures of the new notes were published on 4 December 2009 in the Chosun Shinbo, a North Korean newspaper based in Japan. The paper claimed that the measure would weaken the free market and strengthen the country's socialist system. However, the won plummeted 96 percent against the U.S. dollar in the ensuing days after revaluation. Authorities eventually raised the limit to 500,000 won, Chosun reported, and promised no probes into savings of up to one million won, and unlimited withdrawals if savings of more than one million were properly accounted for.
In February 2010, some of the curbs on the free market were eased, and a senior party official was sacked after incidents of unrest. Pak Nam-gi, the director of the Planning and Finance Department of North Korea's ruling Workers' Party, was executed later in 2010. North Korea denied any serious crisis relating to the revaluation.
Coins First won No coins were issued under the first won of 1947–1959.
Second won The first North Korean coins for circulation were minted in 1959 in denominations of 1, 5, and 10 chon. These coins were often restruck with the original dates in later years; however, 1970 and 1974 dates also appear on the 1 and 5 chon. In 1978, 50 chon coins featuring the Chollima Statue and a rising sun were introduced into circulation during the 1979 currency reform to allow greater flexibility for vendors by eliminating the 50 chon banknote and large amounts of "small change" coinage carried. In 1987, 1 won coins featuring the Grand People's Study House were introduced, but did not fully replace the 1 won note which remained legal tender.
When the historic 2.16 peg to the dollar was abandoned in 2001 to allow for greater convertibility, the coins began to lose value. After 2003, these coins were rarely seen in circulation but were still redeemable. Later, a new set of coins was introduced in 2005 in denominations of 5, 10, 50, and 100 won. These coins were less impressive compared to the older series, being very plain and generic in design. All circulation coins of the second won were struck in aluminum.
+Circulated coins Image Value Technical parameters Description Date of minted year Diameter Composition Obverse Reverse General issue(no star) Socialist visitor(1 star) Capitalist visitor(2 stars) Year lastcirculated 1 chon 16 mm Aluminium State title, coat of arms, year of minting Value (optionally, star(s)) 1959, 1970 1959 1959 ? 5 chon 18 mm 1959, 1974 1974 1974 ? 10 chon 20 mm 1959 1959 1959 ? 50 chon 25 mm Bank title, Coat of arms, value Chollima Statue, year of minting(optionally, star(s)) 1978 1978 1978 ? ₩1 27 mm Bank title, Coat of arms, value, year of minting Grand People's Study House 1987 N/A N/A ? ₩5 21 mm Value 2005 N/A N/A 2009 ₩10 23 mm 2005 N/A N/A 2009 ₩50 25 mm 2005 N/A N/A 2009 ₩100 27 mm 2005 N/A N/A 2009
Following other socialist economies like Cuba and China, North Korea developed a special system of marking coins for two groups of foreign visitors. Issued in 1983, these coins were part of the "Pakkundon" convertible series. Coins with no "stars" were for general circulation in North Korea, coins marked with one star were for "socialist visitors", and coins marked with two stars were designated for "capitalist visitors". A fourth set, intended for collectors rather than circulation, was struck with the word "specimen" or "example" in Korean characters in the areas where the stars would be. The specimen/example set is the least common of the four. Besides the general circulating coins, there is an abundance of different commemorative coins minted in the name of the DPRK. Most, if not all of them, are sold to foreign numismatists. Some of these are official, state approved coins, others are not.
Third won Coins were issued in 10, 50 chon and 1 won denominations in 2002, and 1 and 5 chon denominations in 2008. All denominations are struck in aluminum. These coins feature the national coat of arms on the obverse and different flowers on the reverse, particularly the Kimjongilia and the Kimilsungia, adorns the 50 chon and 1 won coins, respectively.
Initially struck in 2002, the coins were intended for use shortly after the dollar peg was removed from the currency. The 50 chon and 1 won coins were smaller than the previous designs, while the new 10 chon coin was the same size as the old. Hyperinflation became a very sudden reality, however, and the new coins were never released as planned. In 2008, 1 and 5 chon coins were also struck when a plan for monetary revaluation began. The coins were finally released into circulation in December 2009, but due to the flawed nature of the revaluation, these coins again have very little value, the 1 and 5 chon coins in particular being virtually irrelevant. Higher denominations of 50, 100, 500, 1000 and 2000 Won were minted in 2022
+Circulated coins Value Technical parameters Description Date of minted year Diameter Mass Composition Obverse Reverse 1 chon 18.0 mm 0.8 g Aluminium Coat of arms, value Royal azalea, year of minting 2008 5 chon 19.0 mm 0.9 g Tree peony, year of minting 2008 10 chon 20.0 mm 1.0 g Azalea, year of minting 2002 50 chon 22.1 mm 1.55 g Kimjongilia, year of minting 2002 ₩1 24.1 mm 1.9 g Kimilsungia, year of minting 2002
+Circulated coins Value Technical parameters Description Date of minted year Diameter Mass Composition Obverse Reverse 50 Won 18.0 mm 0.8 g Copper Nickel Coat of arms, value Denomination 2022 100 Won 19.0 mm 0.9 g Denomination 2022 500 Won 23.1 mm 5.1 g Denomination 2022 1000 Won 24.02.1 mm 5.6 g Denomination 2022 2000 Won 25.0 mm 6.0 g Denomination 2022
Banknotes
The first banknotes of issued by a Northern partition of Korea were issued in 1945 by the Soviet-backed provisional government above the 38th parallel. These were in denominations of 1, 5, 10, and 100 won. These were discontinued shortly after Soviet forces withdrew and recognized the newly independent state.
First won This currency was issued in all-banknote form, with the first banknotes of this issue in denominations of 15, 20, and 50 chon along with 1, 5, 10 and 100 won in 1947. The chon notes had stylized art designs, while the won denominations were fairly uniform in design, featuring a farmer and a worker standing together and holding the symbolic tools. This currency was later revalued in 1959 at a rate of one new won to 100 old won to curb the inflation that had occurred as a result of the Korean War.
Second won In 1959, the old won was replaced with the second won, with price and exchange rates fixed to the U.S. dollar. This banknote series was issued in denominations of 50 chon, and 1, 5, 10, 50, and 100 won. These notes were much larger than the previous issue and depicted images representing various industries in the North Korean economy.
In 1979, the currency was again reformed, and a new banknote series was issued in denominations of 1, 5, 10, 50, and 100 won. There is ongoing speculation as to why this move was made. All 1959 banknotes were removed from circulation. Circulating coins, however, were not affected by this change. The designs for this issue were much more symbolic and charismatic than previous ones, with Kim Il Sung featuring for the first time on the 100 won note.