As Online Transactions Increase, Currency Lifespan Also Rises... 50,000 Won Note Lasts 14 Years and 10 Months

'2021 Bank Sector Distribution Lifespan Estimation Results'

[Asia Economy Reporter Jang Sehee] It has been found that it takes 14 years and 10 months for a newly issued 50,000 won bill to complete its circulation. This is 3 months longer than before, as the circulation lifespan of banknotes has increased due to the activation of non-face-to-face transactions amid the spread of COVID-19.

According to the Bank of Korea's "2021 Banknote Circulation Lifespan Estimation Results" released on the 6th, the 50,000 won bill had a circulation lifespan of 178.8 months. The 10,000 won bill was 131 months, and the 5,000 won and 1,000 won bills were 62.9 months and 61.3 months, respectively.

The circulation lifespan of currency refers to the period from when a new bill is issued at the Bank of Korea's counter, circulates, and then returns to the Bank of Korea due to damage that makes further use difficult. The Bank of Korea estimated the circulation period using the serial number information of banknote samples.

Low-denomination bills such as the 1,000 won and 5,000 won notes are used more frequently for purchasing goods and services and as change, so their circulation lifespan is relatively shorter than that of high-denomination bills.

Last year's survey results showed that the lifespan of each banknote increased compared to 2020.

Regarding this, the Bank of Korea explained, "The increase in circulation lifespan is due to the expansion of non-cash payment methods and the continued growth of online transactions."

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