The Lifespan of 50,000 Won Bill is '14 Years and 6 Months'... Cash Lifespan Extended Due to COVID-19 Impact

[Image source=Yonhap News]

[Asia Economy Reporter Kim Eunbyeol] The longest-lasting banknote in South Korea is the 50,000 won note, which circulates for 14 years and 6 months before being discarded. Due to the impact of COVID-19, as people reduced cash transactions, the lifespan of cash increased across the board last year.

According to the "2020 Banknote Circulation Lifespan Estimation Results" announced by the Bank of Korea on the 7th, the circulation lifespan of the 50,000 won note was the longest at 174 months. The 1,000 won and 5,000 won notes lasted 60 months each, and the 10,000 won note lasted 130 months.

The circulation lifespan of banknotes refers to the period from when a newly manufactured banknote (new note) is issued at the Bank of Korea counter until it becomes too damaged to be used in circulation. A Bank of Korea official explained, "Low denomination notes are used frequently for purchasing goods and services and for change, so their circulation lifespan is relatively shorter compared to high denomination notes."

The estimation results showed that the circulation lifespan of banknotes increased by about 3 to 12 months compared to 2019. The circulation lifespan of the 50,000 won note increased by one year, from 162 months to 174 months. This is due to the increase in non-face-to-face transactions and the expanded use of non-cash payment methods such as credit cards amid the COVID-19 pandemic. Another factor extending the lifespan is that people are holding onto cash more as a safe asset rather than spending it.

Compared to major countries, South Korea’s banknotes have longer circulation lifespans for the lowest and middle denominations, while the highest denomination lifespan is at a medium level. The circulation lifespan of the 50,000 won note ranked fifth longest among major countries, following the United Kingdom, Australia, the United States, and Switzerland.

This content was produced with the assistance of AI translation services.