The use of personal transactions such as commerce and congratulations and condolences is also high.
Last year, the distribution life of 50,000 won in Korea was 174 months, an increase of 12 months from the previous year, and when compared to the highest cash value in major countries, it ranked fifth after the UK, Australia, the United States and Switzerland. In major countries, the highest face value is mainly used as a means of storing value, but Korea is analyzed that the distribution life is relatively short due to the high utilization of individual transactions such as commerce, congratulations and condolences, and allowances.
According to the results of a new estimate of the distribution life of current banknotes in circulation last year by the Bank of Korea on the 7th, the distribution life of 50,000 won notes last year was 174 months.
The shelf life of banknotes refers to the period of time it takes for manufactured banknotes (new certificates) to be issued at the Bank of Korea window and then circulated in the market and damaged enough to be difficult to use anymore.
By volume, the distribution life of 50,000 won books was the longest. In the same year, the distribution life of 1,000 won and 5,000 won each was 60 months, and the 10,000 won was 130 months. Compared to the previous year, 50,000 won was the longest at 12 months, 5,000 won for 11 months, 10,000 won for 3 months, and 1,000 won for 7 months.
The BOK analyzed that the distribution life of low-priced coupons was relatively shorter than that of high-priced coupons as they were frequently used for purposes such as purchasing goods and services and making changes. In addition, it was analyzed that the increase in life expectancy compared to the previous year was affected by the increase in the use of non-cash payment methods, non-face-to-face transactions due to the recent Corona 19, and increasing demand for safe asset storage.
In addition, when comparing the circulation life of Korean banknotes with major countries, the BOK analyzed that the minimum and median faces were long and the maximum faced was medium. The highest par value distribution life was ranked 5th among major countries after the UK, Australia, the US and Switzerland.
A BOK official said, “Accurate comparison is difficult due to the different methods of estimating the distribution life of each country, but we judge that the distribution life of the minimum and intermediate par value is longer than that of major countries due to the excellent quality of Korean banknotes and the correct use of money by the people.” Explained.
“In the case of 50,000 won in Korea, unlike the highest par value in major countries, which are mainly used as a means of storing value, as it is widely used in personal transactions such as commerce, congratulatory and condolence money, and pocket money, it was found that the distribution lifespan was somewhat shorter compared to the highest par value in these major countries.” Analyzed.
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