What is the currency in North Korea?
Etymology of the Korean currencies
The won is the currency of both North and South Korea. "Won" is a cognate of the Chinese currency unit, the yuan (//), and the Japanese currency unit, the yen (; ¥), meaning "round object". The won is subdivided into 100 jeon ().
Taxation in North Korea
Officially, there are no taxes in North Korea. The date of 1 April is the North Korean "Tax Abolition Day". North Korean propaganda claims that North Korea is the world's only tax-free country. The North Korean state, however, still collects revenue from its citizens in the form of hidden taxation through various sales taxes. In particular, the turnover tax from consumption provides for the majority of the state revenue in North Korea. The North Korean state does, therefore, collect revenues, which internationally has been compared to a taxation system, but inside North Korea the word tax is not used, and the term for state revenue has been variously translated as "Socialist Income Accounting", "Socialist Economic Management Income", and in similar fashion.
2017–18 North Korea crisis
Since North Korea's first nuclear test in 2006, the UN Security Council had passed a number of resolutions that imposed various sanctions on the DPRK, including restrictions on economic activity. Nevertheless, North Korea's gross domestic product grew by an estimated 3.9 percent in 2016, to about $28.5 billion, the fastest pace in 17 years; the progress was largely attributed to continued trade with China, which accounted for more than 90% of North Korea's international trade.
Korea at the 2018 Winter Olympics
In January 2018, it was announced that the South Korea women's national ice hockey team would be amalgamated with a group of North Korean players to form a single Korea women's national ice hockey team in the tournament. They competed under the country code "COR", from the abbreviation of French word "Corée". (The country code “KOR” is already used for South Korea; the IOC uses “PRK” for North Korea.) The anthem which played when the Korea team played in international ice hockey is the folk song "Arirang" instead of the national anthems of either South Korea or North Korea. The team's uniform featured the silhouette of the Korean peninsula with the text "Korea". Because of ongoing U.S. sanctions against North Korea, the uniforms were made by a Finnish company instead of official sponsor Nike.
Slavery in the 21st century
In North Korea, the government forces many people to work for the state, both inside and outside North Korea itself, sometimes for many years. The 2018 Global Slavery Index estimated that 2.8 million people were slaves in the country. The value of all the labour done by North Koreans for the government is estimated at $975 million USD, with "dulgyeokdae" (youth workers) forced to do dangerous construction work, and "inminban" (women and girl workers) forced to making clothing in sweatshops. The workers are often unpaid. Additionally, North Korea's army of 1.2 million soldiers is often made to work on construction projects unrelated to defense.
North Korean won
North Korean won are intended exclusively for North Korean citizens, and the Bank of Trade (무역은행) issued a separate currency (or foreign exchange certificates) for visitors, like many other socialist states. However, North Korea made two varieties of foreign exchange certificates, one for visitors from "socialist countries" which were colored red and hence nicknamed "red won", and the other for visitors from "capitalist countries" which were colored blue/green and hence known as "blue won". FECs were used until 1999, then officially abolished in 2002, in favor of visitors paying directly with hard currencies. Since at least 2012 foreign visitors (and privileged locals) can buy goods priced in 'tied' won using a local debit card, which they have to credit with exchanging foreign currency (Euro, United States dollar or Renminbi/Yuan) at the official bank rate. One euro would provide a credit of 130 won. This card can be used for instance at the famous Pyongyang Department Store No. 1 or at the different stores at the international hotels, where the goods are priced at the tied won rate. This tied won does not exist in the form of bank notes. In normal stores and markets goods are priced in what has been called the 'untied' won or free market rate and regular banknotes can be used here. At for instance the Tongil Market and the Kwangbok Department Store (a.k.a. the Chinese Market) there are semi-official exchange agents who will give in regular banknotes around 10,000 won for one euro (2012) to locals and foreign visitors alike, so almost 77 times as much as the tied rate. However, the prices in the normal shops outside the tied won and restricted state shops are also based on this untied won rate.
Convertibility
Some countries pass laws restricting the legal exchange rates of their currencies or requiring permits to exchange more than a certain amount. Some currencies, such as the North Korean won, the Transnistrian ruble, and the Cuban national peso, are officially nonconvertible and can only be exchanged on the black market. If an official exchange rate is set, its value on the black market is often lower.
Korean currency
From 1978 to 2001, the North Korean government maintained an iconic rate of 2.16 won to the US dollar; since then banks in the country exchange at rates closer to the black market rate. However, rampant inflation has been eroding the North Korean wŏn's value to such an extent that currently it is believed to be worth about the same as the South Korean wŏn (needs sourcing). In any case, the U.S. dollar and other currencies are still worth more in North Korean wŏn on the black market than officially.
North Korean won
As of 2018, most stores in North Korea take U.S. dollars, euros and Chinese yuan/renminbi. Since more renminbi and U.S. dollars are brought into the country than euros, change from transactions is primarily returned in renminbi or U.S. dollars.
Dandong
A substantial portion of North Korea's international trade, both legal and illegal, passes through Dandong and Sinuiju, across the Yalu River in North Korea. China handles roughly 40% of North Korea's worldwide export trade ($1.58 of 4 billion USD) and roughly half of the bilateral commerce with China goes through Dandong which imports $468 million [USD worth of product], according to its Ministry of Commerce. Dandong's annual resident per capita wage income for 2004 was somewhere between ¥9,500 and ¥12,237 RMB and the city's GDP was 3.77 billion USD.
Time in North Korea
Time in North Korea, called Pyongyang Time (Chosŏn'gŭl: , Hancha: or PYT) or Standard Time of the Democratic People's Republic of Korea (Chosŏn'gŭl: , Hancha: ), is since May 2018 equal to Korea Standard Time: 9 hours ahead of UTC (). Like South Korea, North Korea does not currently observe daylight saving time. Time keeping in North Korea is under the State Commission for Science and Technology.
Korean currency
The history of Korean currency dates back around 3rd century BC, when first coins in the form of knife coins, also known as "Myeongdojun" belonging to the state of Yan and Gojoseon said to have been circulated. Grain coins were put to use within the kingdoms for a long period of time. The kingdom of Goryeo issued its own version of grain coins and till 1097. The first iron and bronze coins minted in Korea occurred during the 15th year (996 AD) of the reign of King Seonjeong. During the reign of King Sukjong, a monetary system of casting a variety of coins was established in the years 1097-1107. These coins included the 東國 (Dongguk "Eastern Country"), 海東 (Haedong "Eastern Sea") and 三韓 (Samhan "Three States") series of coins. Coins made from metals other than iron like copper and also silver vase-shaped coins (unbyŏng 銀瓶) were issued in the 10th and 11th century but their circulation was limited).
North Korean won
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.
Korean currency
After the devaluation of the hwan, the won was reintroduced as South Korea's currency on June 10, 1962.
International status and usage of the euro
In 1998, Cuba announced that it would replace the US dollar with the euro as its official currency for the purposes of international trading. On 1 December 2002, North Korea did the same. (Its internal currency, the wŏn, is not convertible and thus cannot be used to purchase foreign goods. The euro also enjoys popularity domestically, especially among elites and resident foreigners.) Syria followed suit in 2006.
North Korea
The economy is heavily nationalized. Food and housing are extensively subsidized by the state; education and healthcare are free; and the payment of taxes was officially abolished in 1974. A variety of goods are available in department stores and supermarkets in Pyongyang, though most of the population relies on small-scale "jangmadang" markets. In 2009, the government attempted to stem the expanding free market by banning jangmadang and the use of foreign currency, heavily devaluing the won and restricting the convertibility of savings in the old currency, but the resulting inflation spike and rare public protests caused a reversal of these policies. Private trade is dominated by women because most men are required to be present at their workplace, even though many state-owned enterprises are non-operational.
Korean currency
Korean currency dates back as far as the Goryeo dynasty (918–1392) when the first iron coins were minted. During that period, even though some imported Chinese currency was also in circulation, commodity currency such as grain and linen continued in general circulation.
Delta Asia Financial Group
Although virtually every bank in Macao handled North Korean funds, U.S. regulators singled out Banco Delta Asia because the shutdown of a smaller bank would create less financial disruption. North Korea was able to gain access to funds deposited at the bank by raising the issue with the United States at the Six-party talks on nuclear weapons technology in Beijing. However, the bank remains under U.S. sanction and is therefore unable to conduct business in either U.S. dollars or in Hong Kong dollars. The sanctions are said to have intimidated other banks from doing business with North Korea and disrupted the country's system for transferring foreign exchange. Macau has responded by stepping up enforcement of anti money laundering laws.
Sin Saimdang
Sin Saimdang is the first woman to appear on a South Korean banknote. The Bank of Korea (BOK; Hangul: 한국은행), the 50,000 won note, first issued in June 2009.
The design of the 50,000 won was released on February 25, 2009. A portrait of Shin Saimdang and her drawings, Mook Grapes (Hangul: 묵포도도) and Chochungdosubyeong (Hangul: 초충도수병,South Korean National Treasure No. 595) were illustrated on the front. Paintings ('wolmaedo' and 'pungjugdo') of the Joseon dynasty were illustrated on the back side. Unlike other bills, the illustrations on the back of this bill were illustrated vertically.
On May 5, The Bank of Korea announced that they selected Shin Saimdang main character of 50000won because she is "a representative female artist in the middle of the Joseon period" and "a person who has accomplished a remarkable achievement in gifted education by fulfilling his wife's role". The reason for the selection is that it is expected to contribute to raising awareness of gender equality in Korean society and to raise the importance of education and family. (Other candidate characters of 50,000 won were Kim Koo, Gwanggaeto the Great, Ahn Changho, Jang Yeong-sil, and Ryu Gwansun.)
Economy of North Korea
In 1979, North Korea renegotiated much of its international debt, but in 1980 it defaulted on its loans except those from Japan. By the end of 1986, hard-currency debt had reached more than US$1 billion. It also owed nearly $2 billion to communist creditors, principally the Soviet Union. The Japanese declared North Korea in default. By 2000, taking into account penalties and accrued interest, North Korea's debt was estimated at $10–12 billion. By 2012, North Korea's external debt had grown to an estimated US$20 billion despite Russia reportedly writing off about $8 billion of debt in exchange for participation in natural resources development. Besides Russia, major creditors included Hungary, the Czech Republic and Iran.
North Korean won
The BBC reported in 2009 that in some department stores in Pyongyang, the North Korean won is not accepted; the stores only take Japanese yen and U.S. dollars.
South Korean won
The South Korean won initially had a fixed exchange rate to the U.S. dollar at a rate of 15 won to 1 dollar. A series of devaluations followed, the later ones, in part, due to the Korean War (1950-53). The pegs were:
Central Bank of the Democratic People's Republic of Korea
On February 15, 1946, a central bank of North Korea was announced, which was to be under the control of the Soviet military. However, the bank failed to accomplish its objectives, being unable to meet its costs of operation, and the 100 million wŏn capitalisation was ineffective. The North Korean Interim People's Committee did not look upon the bank favorably, and chose instead to work through the Farmers' Bank, which also existed at the time. By late 1946, banking functions were consolidated into two main institutions, the Central Bank and Farmer's Bank. In June 1947, around 1,000 million wŏn was concentrated in the Central Bank, allowing it to extend credits totalling 900 million wŏn for economic rehabilitation. The consolidation reflected a return to the original objectives of the People's Committee, which wanted closer control over the economy; any banking people opposed to the changes within the system were removed from their posts. On December 6, 1947, a comprehensive program of currency reform was announced.
South Korean won (1945–53)
At the time of its introduction in 1945 the won was pegged to the Japanese yen at a rate of "1 won = 1 yen". In October of the same year the anchor currency was changed to the US dollar at a rate of "15 won = 1 dollar". Toward the end of the Korean War the won was devalued at "6000 won = 1 dollar". Following that the hwan was introduced as the new currency at a rate of "1 hwan = 100 won".
Korean currency
The won was introduced in 1902, replacing the yang at a rate of 1 won = 5 yang. In 1909, the Bank of Korea was founded in Seoul as a central bank and began issuing currency of modern type. The won was equivalent to the Japanese yen and was replaced by the Korean yen in 1910. At the same time, Korean yen notes issued by Dai Ichi Ginko (First National Bank (of Japan), 株式會社第一銀行) also circulated.
North Korea
North Korea, officially the Democratic People's Republic of Korea (DPRK or DPR Korea) (Korean: 조선민주주의인민공화국, "Chosŏn Minjujuŭi Inmin Konghwaguk"), is a country in East Asia constituting the northern part of the Korean Peninsula, with Pyongyang the capital and the largest city in the country. The name "Korea" is derived from Goguryeo which was one of the great powers in East Asia during its time, ruling most of the Korean Peninsula, Manchuria, parts of the Russian Far East and Inner Mongolia, under Gwanggaeto the Great. To the north and northwest, the country is bordered by China and by Russia along the Amnok (known as the Yalu in Chinese) and Tumen rivers; it is bordered to the south by South Korea, with the heavily fortified Korean Demilitarized Zone (DMZ) separating the two. Nevertheless, North Korea, like its southern counterpart, claims to be the legitimate government of the entire peninsula and adjacent islands. Both North Korea and South Korea became members of the United Nations in 1991.
O Kuk-ryol
In June 2009, O was identified by international authorities and the United States government as a key figure in North Korea's currency counterfeiting activities, specifically with United States one hundred-dollar bills, known as Superdollars. He was reported to have also involved members of his family, including his son O Se-won, in the counterfeiting business, which reportedly took place at the Pyongsong Trademark Printing Factory, a factory under the control of O's Operations Department. His other son O Se-uk, who was also a military general, defected to the United States in 2004. He also has five daughters, the eldest of which is a screenwriter for a film studio. O is also reportedly fluent in Russian, Chinese, and English. In 2006, a South Korean intelligence report noted he was perceived as reliable and knew South Korea well.
Korean currency
After the division of Korea, North Korea continued using the Korean yen for 2 years until the Central Bank of the Democratic People's Republic of Korea was established on December 6, 1947 and a new currency was issued. It was at the time pegged at par to the Soviet ruble. It was revalued at a rate of one hundred to one in February 1959 and new won were issued.
South Korean won
The old "won" was a cognate of the Chinese yuan and Japanese yen. It is derived from the hanja (), meaning "currency" or "coin." The won was subdivided into 100 "jeon" (), itself a cognate of the Chinese character 錢 ("qián") which means "money" and also used as a unit of money in ancient times. The current won (1962 to present) is written in hangul only and does not officially have any hanja associated with it.
Superdollar
It has been confirmed that North Korea has passed off superdollars (Korean: "kattalio") in various countries. The counterfeit bills also circulate both within North Korea and around its border with China. There is, however, some doubt about the reliability of North Korean defectors' claims, on which the United States partially bases its accusations, along with South Korean intelligence sources.
Korean units of measurement
Korean units of measurement, called cheokgwan-beop () or cheokgeun-beop () in Korean, is the traditional system of measurement used by the people of the Korean peninsula. It is largely based on the Chinese system, with influence from Japanese standards imposed following its annexation of the Korean Empire in 1910. Both North and South Korea currently employ the metric system. Since 2007, South Korea has criminalized the use of Korean units in commercial contexts but informal use continues, especially of the "pyeong" as a measure of residential and commercial floorspace. North Korea continues to use the traditional units, although their standards are now derived from metric conversions.
Orders and medals of North Korea
The award system of the Democratic People's Republic of Korea (North Korea) was initially created less than one month after the foundation of the Republic. During the years of Japanese Occupation of North Korea, many of the future leaders fled to the Soviet Union. During World War II many if not close to all party leaders and KPA commanders served in the Soviet Army and as such adopted many of the Soviet Awards criteria for their own. During the late 1940s and until the Sino-Soviet Split in late 1958, orders and titles were made in the Soviet Money Mints in Moscow or Leningrad. Soviet made awards were modeled after Soviet orders and made of sterling silver. Initially the Orders were attached to clothing with a screw-plate, but after Soviet production stopped, production was moved to North Korea. The screwback was replaced with a pin and the silver content was replaced with cheap tin. With the exception of a few examples of modern orders, Soviet and Czech KPA awards are the most sought after in current militaria markets.Honorary titles include:
List of licensed and localized editions of Monopoly: Africa and Asia
The currency used in the game is shown with the letter "M" crossed by two horizontal lines. This is not the real currency of the Republic of Korea.
Cash-for-summit scandal
Cash-for-summit is the name of a political scandal that broke in South Korea in February 2003 and revolved around the secret payment by the Kim Dae-jung administration to North Korea of 500,000,000 dollars to secure the landmark June 2000 NorthSouth summit between the two Koreas.
South Korean won
A new central bank, the Bank of Korea, was established on 12 June 1950, and assumed the duties of Bank of Joseon. Notes were introduced (some dated 1949) in denominations of 5, 10 and 50 jeon, and 100 and 1,000 won. The 500-won notes were introduced in 1952. In 1953, a series of banknotes was issued which, although it gave the denominations in English in won, were, in fact, the first issues of the hwan.
Etymology of the Korean currencies
The won sign ("₩", a capital W with a horizontal stroke) is represented in Unicode at the code point 20A9 (8361 in decimal).
Korean language
Korean is the official language of North Korea and South Korea. It is also one of the two official languages of the Yanbian Korean Autonomous Prefecture in China.
Tongil Market
The market is busy with customers. Prices are in North Korean won and haggling is commonplace. Some prices on par with those in Chinese markets, with vegetables being somewhat more expensive but seafood and clothes generally cheaper. The prices are, however, not particularly cheap in relation to average incomes of North Koreans. For instance, spinach costs 1,000 won at the Tongil Market, fifty times as much as its 20-won price tag at rural markets in North Korea. Because the market is well-stocked, it has been suspected of being a "showpiece", but in fact its wares are comparable to other markets in the country. Its customer base is, however, mainly foreign vistors and domestic elites. The market is open to foreign vistors, and many embassies in Pyongyang use it for shopping. Photography is not allowed. One foreigner, Pamela Bryant, a visiting professor at Pyongyang University of Science and Technology relates how one of her faculty members broke the rule resulting in the entire faculty being banned from the market for three months.
Economy of North Korea
It has also been estimated that imports of arms from the Soviet Union in the period 1988 to 1990 accounted for around 30% of the North Korea's total imports, and that between 1981 and 1989 North Korea earned approximately $4 billion from the export of arms, approximately 30% of North Korea's total exports in that period. The nominal dollar value of arms exports from North Korea in 1996 was estimated to have been around $50 million.
Mining in North Korea
North Korea is thought to have tremendous potential metal resources (and particularly rare-earth metals), which have been valued in excess of US$6 trillion by the South Korean national mining company. There is much investment from Chinese mining companies, with an estimated $500 million investment in the last 11 years. 41% of all Chinese companies trading in North Korea are involved in mining.
Room 39
Room 39 (officially Central Committee Bureau 39 of the Workers' Party of Korea, also referred to as Bureau 39, Division 39, or Office 39) is a secretive North Korean party organization that seeks ways to maintain the foreign currency slush fund for the country's leaders, initially Kim Il-sung, then, in progression, Kim Jong-il and Kim Jong-un.
North Korean won
In 2005, the Central Bank of the Democratic People's Republic of Korea issued commemorative 200, 500, 1000 and 5000 won notes to celebrate the 60th anniversary of the foundation of North Korea. It consists of an overprint on its regular issue notes.
North Korean won
On July 25, 2014, a new 5,000 won note dated 2013 was released into circulation. Instead of depicting the portrait of North Korea's founder Kim Il-sung, the note depicts an image of his birthplace in Mangyondae and on the back the International Friendship Exhibition in Myohyangsan that displays gifts he and his son Kim Jong-il received from foreign leaders. There has been ongoing speculation that this could indicate plans for higher denominations to be released later which would depict Kim Il-sung, Kim Jong-il, or possibly both. However the official reason behind the change was to combat counterfeiters.
Korean currency
The country then had to switch over to a new currency unit named "hwan" replacing won at 1 hwan = 100 won. Like South Korean won, this currency unit was also issued in banknotes initially but in 1959, coins denominated in hwan were also issued and were the first circulating coins in South Korea. Hwan had a peg with US dollar but with time it also got devaluated. This was the reason for the reintroduction of won in 1962 as the official currency unit. South Korean currency was still pegged to the US dollar until in 1997 when it was floated into the world market.
South Korean won
On June 23, 2009, the Bank of Korea released the 50,000-won note. The obverse bears a portrait of Shin Saimdang, a prominent 16th-century artist, calligrapher, and mother of Korean scholar Yulgok, also known as Yi I, who is on the 5,000-won note. This note is the first Korean banknote to feature the portrait of a woman. The release of the 50,000-won note stirred some controversy among shop owners and those with visual impairments due to its similarity in color and numerical denomination with the 5,000-won note.
North Korean won
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 were smaller than the previous designs, while the new 10 chon 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 carry very little value, with especially the 1 and 5 chon being virtually irrelevant.
North Korean won
In 1992, another redesign was carried out for banknotes, again in denominations of 1-, 5-, 10-, 50-, and 100-won. Older notes were once again withdrawn. These notes were smaller and crisper than the previous issue and depicted more modern themes. The 5 and 10 won banknotes were again issued in 1998, along with a 500 won banknote that same year but were stamped rather than engraved reflecting poorer production quality. In 2002, 1,000 and 5,000 won notes were introduced, followed by a 200 won note in 2005. The former two were identical in design to the 100 won though differing in colors and added security features, but the colored fields behind the text no longer extended all the way to the margins. In 2007, the 500 won had also been revised in this same manner along with being engraved for the first time to protect against counterfeiting. From 1998 onwards, all notes were dated using the Juche year along with the standard dating.
South Korean won
The first South Korean won was replaced by the "hwan" on February 15, 1953 at a rate of 1 hwan = 100 won.
Republic of Korea Banknotes 5th Edition
South Korean hwan
The hwan was the currency of the Republic of Korea (South Korea) between February 15, 1953 and June 9, 1962.
Bank of Korea (1909–1950)
The Bank of Joseon (Korean: 조선은행) or Bank of Chosen (Japanese: 朝鮮銀行) was the central bank of Colonial Korea, and of South Korea. The bank issued the Korean yen from 1910 to 1945 and the won from 1945 to 1950.
2017 Seongnam FC season
"After the match against FC Cartagena, Seongnam FC squad return to South Korea, arriving on 23rd Feb 2017."* Currency is Korean Won."
Human rights in North Korea
Economic reform abolished the old coupon system in North Korea, which had favored non-productive citizens regarding access to food. After the coupon system disappeared, an average urban family spent between 75 and 85 percent of their income on food, while state farmers were spending only a third of their income on food. These disparities show that North Korea does not have safety net mechanisms to protect the vulnerable people in society, such as housewives and the elderly.
Delta Asia Financial Group
The bank has been accused of engaging in money laundering and distribution of superdollars for the government of North Korea. In September 2005, the impending imposition of sanctions by the United States was announced, which triggered a massive bank run. As a result, the Macao Government invoked a banking law to replace the bank's board by government appointees. As a result of this, several North Korean companies in Macao which had accounts with the bank, including Zokwang Trading, had their accounts frozen. Kim Jong-nam, the eldest son of North Korea's leader Kim Jong-il, had lived in Macao since 2004, when the United States imposed sanctions on a bank in Macao for allegedly helping North Korea launder money. However, the United States agreed to resolve the issue of frozen Banco Delta Asia bank accounts, if North Korea disarms its atomic arsenal.
North Korea's illicit activities
The International Convention for the Suppression of Counterfeiting Currency is the primary treaty whereby states agree to criminalize acts of currency counterfeiting. North Korea is not a party to the treaty.
List of companies of North Korea
North Korea is a country in East Asia, in the northern part of the Korean Peninsula. It claims sovereignty over South Korea. Over time North Korea has gradually distanced itself away from the world communist movement. "Juche", an ideology of national self-reliance, was introduced into the constitution as a "creative application of Marxism–Leninism" in 1972. The means of production are owned by the state through state-run enterprises and collectivized farms. Most services such as healthcare, education, housing and food production are subsidized or state-funded. From 1994 to 1998, North Korea suffered from a famine that resulted in the deaths of between 0.24 and 3.5 million people, and the country continues to struggle with food production. North Korea follows "Songun", or "military-first" policy. It is the country with the highest number of military and paramilitary personnel, with a total of 9,495,000 active, reserve, and paramilitary personnel. Its active duty army of 1.21 million is the fourth largest in the world, after China, the United States, and India.
Korea
Korean is the official language of both North and South Korea, and (along with Mandarin) of Yanbian Korean Autonomous Prefecture in the Manchuria area of China. Worldwide, there are up to 80 million speakers of the Korean language. South Korea has around 50 million speakers while North Korea around 25 million. Other large groups of Korean speakers through Korean diaspora are found in China, the United States, Japan, former Soviet Union and elsewhere.
Juche
In 1956, Kim Il-sung declared "Juche" to be the guiding principle of the economy. After the devastation of the Korean War, North Korea began to rebuild its economy with a base in heavy industry, with the aim of becoming as self-sufficient as possible. As a result, North Korea developed what has been called the "most autarkic industrial economy in the world". North Korea received a lot of economic aid and technical assistance from the Soviet Union and China, but it did not join Comecon, the Communist common market. In the 1990s, it had one of the world's lowest rates for dependence on petroleum, using hydroelectric power and coal instead of imported oil. Its textile industry uses vinylon, known as the ""Juche" fiber", which was invented by a Korean and which is made from locally available coal and limestone. The history of the development of vinylon often featured in propaganda that preached the virtues of technological self-reliance. North Korea had 10,000 CNC machines in 2010. The first domestic homemade CNC machine was introduced in 1995 and in 2017 it has around 15,000 machines.
Korean currency
Due to the short notice of the change in currency, the first series of the new notes was commissioned from the United States Government Printing Office. The notes were released in five denominations, all with an identical design. Some replacement notes with a more suited Korean theme were later issued, starting with the 100 hwan just a month later.
South Korean won
The banknotes include over 10 security features in each denomination. The 50,000-won note has 22 security features, the 10,000-won note 21, the 5,000-won note 17, the 2,000-won note 10 and the 1,000-won note 19. Many modern security features that can be also found in euros, pounds, Canadian dollars, and Japanese yen are included in the banknotes.
Some security features inserted in won notes are:
For the first time in the world, KOMSCO, the Korean mint, inserted a new substance in the notes to detect counterfeits. This technique is being exported to Europe, North America, etc.As the South Korean economy is evolving through the use of electronic payments, coins of the South Korean won are becoming less used by consumers. The Bank of Korea began a trial which would result in the total cessation of the production of coins of the South Korean won.
North Korean won
The first banknotes of "North Korea" were issued in 1945 by the Russian 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.
Roh Moo-hyun
South Korea received the highest marks on the Reporters Without Borders Press Freedom Index under his administration. The value of the South Korean won against the US Dollar was the strongest during his administration since 1997. Due to the strong currency, for the first time in history, South Korea became the world's 10th largest economy and exceeded the $20,000 milestone in nominal GDP per capita during his administration.
Etymology of the Korean currencies
The word jeon is also used in Korean to translate the word "cent," and in this context is associated with bul (불, 弗), meaning "dollar." (The hanja character resembles the symbol "$".) These two words are used by Koreans living in the Western hemisphere when referring to dollar currencies.
List of motifs on banknotes
The official currency of South Korea is the South Korean Won (KRW). The motifs used are:
Mount Kumgang
The Mount Kumgang Tourist Region is thought to be one way for the North Korean government to receive hard currency from abroad. Therefore, the official currency of the tour is neither the South Korean won nor the North Korean won, but the US dollar. Since 2003, food and services to South Korean tourists are provided by some North Koreans. But most of the staff in the hotels are Chinese citizens of Korean heritage with Korean language skills. The area is developed by Hyundai Asan, which plans to expand the site with a proper ski resort to complement the current sleigh course, and complete golf courses. Many plans for expansion, however, are in their earliest stages.
Yuan (currency)
The symbol for the yuan (元) is also used in Chinese to refer to the currency units of Japan "(yen)" and Korea "(won)", and is used to translate the currency unit "dollar" as well as some other currencies; for example, the United States dollar is called "Meiyuan" () in Chinese, and the euro is called "Ouyuan" (). When used in English in the context of the modern foreign exchange market, the Chinese yuan (CNY) refers to the renminbi (RMB), which is the official currency used in mainland China.
South Korean won (1945–53)
Won is a cognate of the Chinese yuan and Japanese yen. The won was subdivided into 100 jeon (전; 錢; McCune-Reischauer: "chŏn"; revised: "jeon").
Economy of North Korea
The Central Bank of North Korea, under the Ministry of Finance, has a network of 227 local branches. Several reissues of banknotes in recent years suggest that citizens are inclined to hoard rather than bank any savings that they make from their incomes; reportedly they now also prefer foreign currency. At least two foreign aid agencies have recently set up microcredit schemes, lending to farmers and small businesses.
Expatriates in the United Arab Emirates
Roughly 1,300 North Korean workers live in the UAE, primarily in Dubai and Abu Dhabi. They earn between US$300 and $500 per month, but must make so-called "loyalty payments" of $150 to $250 to the North Korean government. This has sparked discontent among those workers—and in response, the North Korean government has sent security agents to patrol North Korean work camps and look for people making critical comments.
Foreign Trade Bank of the Democratic People's Republic of Korea
The Foreign Trade Bank of the Democratic People's Republic of Korea (Joson Trade Bank) is North Korea's primary foreign exchange bank, and is owned and run by the North Korean government.
North Korean won
Since 2001, the North Korean government has abandoned the iconic rate of 2.16 won to the dollar (which is said to have been based upon Kim Jong-il's birthday, February 16) and banks in the country now issue at rates closer to the black market rate. More recent official rates have shown the North Korean won () to be ₩129.559 to the US dollar. However, rampant inflation has been eroding the North Korean won value. A report by defectors from North Korea claimed that the black market rate was ₩570 to the Chinese yuan (or about ₩4,000 per U.S. dollar) in June 2009. As of December 6, 2018, xe.com, a website that publishes mid-market currency exchange rates, lists the exchange rate at ₩900.073 to US$1.00.
Bombardment of Yeonpyeong
The North Korean attack had a global impact on the financial markets. Several Asian currencies weakened against the euro and U.S. dollar, while at the same time Asian stock markets declined. The impact of the shelling on the financial industry led South Korea's central bank, the Bank of Korea, to hold an emergency meeting to assess the impact of the fighting on the markets.
Chollima Movement
Chollima has been used as a brand name for trucks, buses, and tractors in North Korea. One of the lines on the Pyongyang Metro is called Chollima, as is the North Korean national football team. The winged horse has been depicted on North Korean currency starting in 1978, as well as being seen on postage stamps.
Korean mun
The mun was introduced as the main currency of Korea in 1633 and stayed in use until 1892. It resembled and was derived from the Chinese wen (cognate also to the Japanese mon, Ryukyuan mon, and the Vietnamese văn). Coins denominated in mun were cast in copper or bronze and were round with square holes. From the 17th century until the end of the 19th century, coins denominated in "mun" bearing the inscription "Sangpyeong Tongbo" (, ) were the most widely circulated currency. In 1888, coins were struck in small numbers denominated in mun and won (equal to 1000 mun). The mun was replaced in 1892 when the yang was introduced.
North Korea–Russia relations
In May 2014 Russia and North Korea have agreed to settlements in rubles in all trade between the two countries. The first transactions in rubles between Russia and North Korea were carried out in October 2014.
South Korean won (1945–53)
The won was the first South Korean currency and was in use from August 15, 1945 to February 15, 1953.
North Korean won
In 2009, another currency reform was initiated to tackle hyperinflation and black market activities. Unlike previous reforms, the 2009 move sparked a nationwide panic when it was announced there would be a two-week waiting period between the withdrawal of the old currency and the introduction of the new currency, coupled with an exchange limit of only 500,000 old won for each person, effectively wiping out savings. The state eventually pulled back on most exchange limits; however, the revaluation proved to be a failure.
Korean currency
The first note put in circulation by the Bank of Korea in 1950 was printed in Japan by the National Printing Bureau (国立印刷局). The next year the Korea Minting and Security Printing Corporation was created and took over as printer of South Korean currency.
North Korean calendar
The Democratic People's Republic of Korea calendar, DPRK calendar, or "Juche" calendar (), named after the "Juche" ideology, is the system of year-numbering used in the Democratic People's Republic of Korea.
North Korean support for Iran during the Iran–Iraq War
North Korea sold arms primarily as a source of foreign exchange. North Korea demanded the currency of its declared enemy, the United States, as payment. Sales ended only after North Korea's nuclear test, in October 2006, caused the passage of United Nations Security Council Resolution 1718 embargo.
Economy of North Korea
North Korea had a similar GDP per capita to its neighbor South Korea from the aftermath of the Korean War until the mid-1970s, but had a GDP per capita of less than $2,000 in the late 1990s and early 21st century.
National symbols of North Korea
Upon its liberation in 1945 and subsequent foundation in 1948, North Korea adopted national symbols distinct from the national symbols of South Korea. The traditional flag of Korea, the Taegukgi, and the symbol Taeguk, were swapped for communist symbols.
South Korean won
The Bank of Korea is the only institution in South Korea with the right to print banknotes and mint coins. The banknotes and coins are printed at KOMSCO, a government-owned corporation, under the guidance of the Bank of Korea.
After the new banknotes and coins are printed/minted, they are bundled or rolled and shipped to the headquarters of the Bank of Korea. When delivered, they are deposited inside the bank's vault, ready to be distributed to commercial banks when requested.
Every year, around Seollal and Chuseok, two major Korean holidays, the Bank of Korea distributes large amounts of its currency to most of the commercial banks in South Korea, which are then given to their customers upon request.
South Korean won
On February 27, 1980, efforts were initiated to lead to a floating exchange rate. The won was finally allowed to float on December 24, 1997, when an agreement was signed with the International Monetary Fund. Shortly after, the won was devalued to almost half of its value, as part of the East Asian financial crisis.
Ghana–North Korea relations
Ghana has mostly run a deficit in its trade with North Korea, meaning that Ghana is a source of foreign currencies to North Korea. In 2015, North Korea was Ghana's 77th biggest trade partner with $6.8 million in trade. Ghana imports mostly cement from North Korea. It exports mainly cocoa, gemstones, and pearls, but also precious metals.
North Korean won
The won was revalued in November 2009 for the first time in 50 years. 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. The official exchange rate at this time was around $740 but black market value of the ₩150,000 was estimated to be near $30. 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. Information was later carried via a wire-based radio service only available within North Korea.
Korean won
The won was introduced in 1902, replacing the yang at a rate of 1 won = 5 yang. Units: 1 won = 100 chon/銭, 1 chon = 5 poon/分(fun ec. yesteryear spellings) of the preceding currency. In 1909, the Bank of Korea (한국은행; 韓國銀行) was founded in Seoul as a central bank and began issuing currency of a modern type. The won was equivalent to the Japanese yen and was replaced by the Korean yen in 1910 during the Colonial Era. In 1910, the Bank of Korea was renamed the Bank of Joseon (; 朝鮮銀行), which issued notes denominated in yen and "sen".
South Korean won
Prior to 1910, the won was the currency.
North Korean won
As explained above, there are two varieties of foreign certificates. For the 1978 banknote series, foreign certificates, called "Pakkundon", meaning "exchangeable money" were implemented by an overstamp and serial number color. This was intended to protect the value of the national currency in North Korea's command economy. These were first released in 1983 in two forms, one for "socialist visitors" which had a red stamp, and one for "capitalist visitors" which had a green stamp. Another series was released in 1986 with either a blue or red Guilloché style stamp. These were issued in all denominations, except for the ₩100 note, presumably because it was assumed by the government that foreign visitors to North Korea would not show proper respect for its depiction of Kim Il-sung. These notes were discontinued in 1988 and replaced with a new series of Pakkundon in all banknote form that was more distinguishable and unmistakable from generic circulation currency.
Emblem of North Korea
The National Emblem of the Democratic People's Republic of Korea is the coat of arms of North Korea, officially known as the Democratic People's Republic of Korea. The current version adopted in 1993 is based on a design that was used since the foundation of the republic in 1948. Two previous versions were briefly in use in the late 1940s. Prominent features on the emblem are a red star, a hydroelectric plant (the Sup'ung dam) and Mount Paektu. The design bears similarities to the emblem of the Soviet Union and other emblems of the socialist heraldic style.
North Korea
North Korea officially describes itself as a "self-reliant" socialist state, and formally holds elections, though said elections have been described by outside observers as sham elections. Various media outlets have called it Stalinist, particularly noting the elaborate cult of personality around Kim Il-sung and his family. The Workers' Party of Korea (WPK), led by a member of the ruling family, holds power in the state and leads the Democratic Front for the Reunification of the Fatherland of which all political officers are required to be members. "Juche", an ideology of national self-reliance, was introduced into the constitution in 1972. The means of production are owned by the state through state-run enterprises and collectivized farms. Most services such as healthcare, education, housing and food production are subsidized or state-funded. From 1994 to 1998, North Korea suffered a famine that resulted in the deaths of between 240,000 and 420,000 people, and the population continues to suffer malnutrition. North Korea follows "Songun", or "military-first" policy. It is the country with the highest number of military and paramilitary personnel, with a total of 9,495,000 active, reserve and paramilitary personnel, or approximately of its population. Its active duty army of 1.21 million is the fourth largest in the world, after China, the United States and India; consisting of of its population. It possesses nuclear weapons.
Beer in North Korea
Tourists may buy beer with foreign currency without the limitations that apply to North Koreans. Beer in international hotels cost about two euros. Indeed, for tourists, according to Josh Thomas, the actual "price of drinking North Korean beer is bowing to a lot of statues of Kim Il-Sung and Kim Jong-Il, listening to their version of the Korean war, and eating anything and everything they give you to eat".
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.
North Korean won
Pictures of the new notes were published on December 4, 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 said, and promised no probe into savings of up to one million won and unlimited withdrawals if savings of more than one million are properly explained.
Korean currency
Following the end of the division of Korea, the won was introduced to replace the Korean yen. The won was subdivided in 100 jeon. The first banknotes were issued by the Bank of Joseon in denominations ranging from 5 jeon to 100 won. In 1950 the currency management switched to the Bank of Korea and new notes were then issued, mostly with higher denominations.
Economy of South Korea
For the first half of the 1990s, the South Korean economy continued a stable and strong growth in both private consumption and GDP. Things changed quickly in 1997 with the Asian Financial crisis. After several other Asian currencies were attacked by speculators, the Korean won started to heavily depreciate in October 1997. The problem was exacerbated by the problem of non-performing loans at many of Korea's merchant banks. By December 1997, the IMF had approved a USD $21 billion loan, that would be part of a USD $58.4 billion bailout plan. By January 1998, the government had shut down a third of Korea's merchant banks. Throughout 1998, Korea's economy would continue to shrink quarterly at an average rate of -6.65%. Korean chaebol Daewoo became a casualty of the crisis as it was dismantled by the government in 1999 due to debt problems. American company General Motors managed to purchase the motors division. Indian conglomerate Tata Group, purchased the trucks and heavy vehicles division of Daewoo.
Korean currency
At the time of the introduction in 1945 the won was pegged to the Japanese yen at a rate of 1 won = 1 yen. In October of the same year the anchor currency got change to the US dollar at a rate of 15 won = 1 dollar. Toward the end of the Korean War the won was devaluated at 6000 won = 1 dollar. Following that the hwan was introduced as the new currency at a rate of 1 hwan = 100 won.
North Koreans in Russia
However, the most recent influx of North Korean workers, which began under the government of Vladimir Putin, is composed of volunteers seeking to escape unemployment and poverty at home. Most are from Pyongyang; recruitment companies prefer workers from urban areas, as they are believed to adapt better to life in other countries. By 2006, more than 10,000 North Koreans entered Russia on work visas annually, largely headed for the Russian Far East. They are closely monitored by North Korean security forces to prevent defections; many report being paid in scrip rather than legal currency. In 2009 the North Korean government was estimated to earn roughly US$7 million each year in foreign exchange through their workers in Russia. In 2010 reports came out from Nakhodka indicating that North Korean workers and traders there had been evacuated back to their home country due to rising military tensions with South Korea. In 2011 Kim Jong-il made a visit to Russia in which he reportedly negotiated for even more North Korean workers to be sent to Russia. Up to 70% of the $40 to $100 per month wages earned by the workers are reported to be taken away as "loyalty payments".
Economy of North Korea
The South Korea-based Bank of Korea estimated that over 2000 to 2013 average growth was 1.4% per year. It estimated that the real GDP of North Korea in 2015 was 30,805 billion South Korean won. The same year, it published the following estimates of North Korea's GDP growth:
North Korea's illicit activities
Counterfeiting currency is alleged to have begun in the 1970s under Kim Jong-il's direction; however, the notes produced at the time were not of high quality. Since then, and within the jurisdiction of Room 39, the North Korean government has counterfeited $50 and $100 United States banknotes using increasingly sophisticated techniques. In 1994, authorities in Hong Kong and Macao apprehended five North Korean diplomats and trade-mission members carrying around $430,000 in bills that turned out to be "superdollar" (also called "supernote") counterfeits. There have been two primary reasons for counterfeiting: the first is to wage economic warfare against the United States, and secondly, to help ease North Korea's domestic economic problems. According to a report by Dr. Balbina Hwang of American University, North Korea circulated $100 million in counterfeit currency in 2001. The revenues from this are estimated at between $15 million and $25 million annually. In 2013, the United States released its newly redesigned 100 dollar bill. The primary purpose of the redesign was to fight against counterfeiting and prevent the recurrence of the "supernotes" which were produced by North Korea.
Currency swap
South Korea and Indonesia signed a won-rupiah currency swap deal worth US$10 billion in October, 2013. The two nations can exchange up to 10.7 trillion won or 115 trillion rupiah for three years. The three-year currency swap could be renewed if both sides agree at the time of expiration. It is anticipated to promote bilateral trade and strengthen financial cooperation for the economic development of the two countries. The arrangement also ensures the settlement of trade in local currency between the two countries even in times of financial stress to support regional financial stability. As of 2013, South Korea imported goods worth $13.2 billion from Indonesia, while its exports reached $11.6 billion. In August 2018, Qatar and Turkey's central banks signed a currency swap agreement to provide liquidity and support for financial stability.
Postage stamps and postal history of North Korea
The first stamps of North Korea were issued on 12 March 1946: "Rose of Sharon" and "Samson Rock". Stamps prior to 1974 dealt primarily with subjects relating specifically to North Korea, its foundation, Kim Il-sung and other patriotic themes. After 1974, in a bid to bring more hard currency into the country, North Korea began issuing stamps with wide-ranging themes (such as Joan of Arc, airships, sports and wildlife) and using English descriptions.