South Korean Won (KRW)

Basic Concepts of the Korean Won

The Won is the legal tender of South Korea, with the currency code KRW and symbol ₩. It is issued and managed by the Bank of Korea and is used primarily for everyday transactions, savings and international settlements, and is a central component of the Korean economic system.

Regions of use

The Won is primarily used in the Republic of Korea (ROK), including major cities such as Seoul and Busan. In addition, the won is accepted in Korea's overseas territories, such as Jeju Island, as well as in some international travel and trade scenarios.

Units and Denominations

The basic unit of the Won is the 원 (Won) and the secondary unit is the 전 (Jeon), which is no longer in circulation. Common banknote denominations include 1,000, 5,000, 10,000, and 50,000 won, while coins come in denominations of 1, 5, 10, 50, 100, and 500 won.

Historical Background

Originally introduced in 1902 by the Joseon Dynasty, the Won underwent a number of reforms before it officially became the national currency after South Korea's independence in 1945 and underwent high rates of inflation and currency revaluation (e.g., the 1962 currency reform). The modern won is pegged to major currencies such as the US dollar, reflecting Korea's post-war economic rise and globalization.