50,000 Won Bills Set New Exchange Record Before Lunar New Year

Increased Demand for 50,000 Won Bills Ahead of Lunar New Year

As the holiday season approaches, there has been a noticeable shift in how people are withdrawing cash from banks. More individuals are opting for 50,000 won bills over 10,000 won bills, reflecting a growing preference for higher denominations. This trend has been consistent over the years, and this year, it reached an all-time high.

According to data provided by the Bank of Korea to Rebuilding Korea Party lawmaker Cha Gyu-geun, the total amount of currency exchanged by the central bank between January 13–14 of this year, just before the Lunar New Year, was 34.34 billion Korean won. Out of this, 50,000 won bills made up the largest portion, totaling 15.86 billion won. This represents an increase of about 1 billion won compared to the previous year’s Lunar New Year, marking a new record.

In contrast, the exchange volume for 10,000 won bills saw a decline of nearly 1 billion won, dropping from 14.93 billion won last year to 14.01 billion won this year. The 5,000 won bills remained relatively stable, with only a slight decrease from 2.8 billion to 2.78 billion won. Meanwhile, 1,000 won bills experienced a minor increase, rising from 1.69 billion to 1.7 billion won during the same period.

No Exchange of Old Coins This Year

One notable change this year is the absence of any exchanges involving old coins. The total amount exchanged for all types of coins—10, 50, 100, and 500 won—was recorded as zero. Last year, however, there were significant exchanges: 100,000 won for 10 won coins, 500,000 won for 50 won coins, 2 million won for 100 won coins, and 9 million won for 500 won coins.

This year's lack of demand for coin exchanges can be attributed to two main factors: a decline in cash usage and rising prices. As more transactions move toward digital payments, the need for physical coins has diminished. Additionally, inflation has made smaller denominations less practical for everyday purchases.

Central Bank’s Role in Currency Exchange

The Bank of Korea typically facilitates the exchange of old bills for new ones ahead of major holidays. This process ensures that the public has access to clean and updated currency for celebrations. For those who find themselves waiting long lines at commercial banks, lawmaker Cha Gyu-geun suggested considering the central bank as an alternative option for exchanging bills.

This year’s data highlights a clear shift in consumer behavior, with a stronger preference for higher-value notes and a reduced reliance on coins. These trends may reflect broader changes in how people manage their finances and interact with the economy during festive periods.