Author Topic: South Korea: Hanging a coin  (Read 1354 times)

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Offline Figleaf

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South Korea: Hanging a coin
« on: February 19, 2008, 02:30:47 PM »
Central Bank Frets Over 10 Won Coin Pendant
By Yoon Ja-young 02-19-2008 16:35   

The Bank of Korea is considering action over 10 won coins being made into pendants. Since the manufacturing costs of the coin is much higher than its face value, such destruction of coins adds a burden to the central bank, which will have to issue more coins at higher costs.

A netizen named Yoon Han-jo reported seeing a vending machine that makes a leaf-shaped pendant out of a 10 won coin, for 1,000 won, at the Website of the central bank. He said the pressing machine, which he saw at Busan Cultural Center, is destroying these coins.

The central bank, however, has no legal measures to ban such activity. ``It is against the public good to deliberately damage coins or bills, as it disrupts the circulation of money and the order of the economy. It is banned in some countries,'' the Bank of Korea said. A bill banning and punishing such a deed is pending at the National Assembly, it added.

The Bank of Korea said it cannot overlook the distortion of 10-won coins here as it costs well over 20 won to manufacture them. The Bank of Korea issues and circulates bills and coins manufactured by the Korea Minting & Security Printing Corporation. The money comes back to banks and other financial institutions through deposits or paying of taxes. Part of the money comes back to the central bank through redemption. Bills and coins that are in good condition are reused, but the contorted ones are destroyed.

According to the central bank, it issued 137.2 billion won worth of coins last year, but only 16.7 billion won of coins, or 12.2 percent, was redeemed by the bank. In the case of 10-won coins, only 276 million won of the 2.9 billion won issued, or 9.4 percent, were redeemed. The bank estimates many of the coins are kept in drawers or piggy banks, and is considering ways to draw them out for active circulation.

Source: Korea Times
« Last Edit: February 19, 2008, 03:05:41 PM by Figleaf »
An unidentified coin is a piece of metal. An identified coin is a piece of history.