April 26, 2024
Finance
New cash issuance costs on the rise
[THE INVESTOR] The Bank of Korea last year spent a total of 150 billion ($126.9 million) to issue new notes and coins, up 4.4 precent from the precious year and marking the second consecutive annual increase.
The central bank also said on Jan. 18 that it spent 46.4 billion won on replacing the damaged banknotes and coins with new bills and coins.
The cost for making new notes include those for paper, ink, hologram and other means to prevent forgery. To make coins, it takes copper, aluminum and other materials as well as expenses for roiling.
According to the bank, it takes an average of five years and five months for a 5,000 won bill to be issued until it is returned. It is three years and four months for 1,000 won notes.
In order to reduce the cost of issuing cash, the bank has started promoting going coinless, with its first campaign for this year targeting the Lunar New Year holiday where cash gifts -- usually using new notes -- is a tradition.
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