Korean currency
In 1902, won was introduced as the official currency unit replacing yang at 1 won = 5 yang. The bank of Korea was established 1909 but soon after in 1910, Imperial Japan annexed Korean Empire. Under Colonial rule, the country was made to use the currency unit "yen" in the name of Korean yen, which took over the Korean won at par. After the division of Korea, the state of South Korea was established and recognized in 1948, and won was again made the official currency of the new state. "jeon" was made the subunit of the currency that divided it into 100 equal parts. Bank of Joseon issued the currency for independent South Korea for the first time that too in banknotes only.
Economy of North Korea
In late 2009, North Korea revalued its currency, effectively confiscating all privately held money above the equivalent of US$35 per person. The revaluation effectively wiped out the savings of many North Koreans. Days after the revaluation the won dropped 96% against the United States dollar. Pak Nam-gi, the director of the Planning and Finance Department of North Korea's ruling Workers' Party, was blamed for the disaster and later executed in 2010.
In 2004 and 2006 laws were passed to codify rules for savings and commercial banking. However it was not until 2012 that North Korean banks started to seriously compete for retail customers. Competing electronic cash cards have become widely accepted in Pyongyang and other cities, but are generally not linked to bank accounts. North Korean banks have introduced retail products which permit a mobile phone app to make payments and top-ups.