Where and How Much Can Damaged Cash from Fire and Flood Be Exchanged?

Exchange of Over 100 Million Won in Damaged Banknotes Burned in Market Fire

[Asia Economy Reporter Seo So-jeong] Can damaged banknotes from fires or floods be exchanged for normal banknotes? Damaged banknotes with easily determinable exchange amounts can be exchanged easily at nearby banks, but in other cases, the exchangeable amount varies depending on the remaining area.

Last year, Mr. Jo, who lives in Seoul, exchanged 104.45 million won worth of banknotes burned in a market fire for normal banknotes. Mr. Baek, who lives in Gwangju, exchanged 47.2 million won worth of banknotes damaged by flooding, and Mr. Noh, who lives in Incheon, exchanged 5.875 million won worth of banknotes damaged by fire after his mother, who suffers from dementia, put 50,000 won bills in a pot and lit a fire.

According to the Bank of Korea on the 6th, if part or all of a banknote is damaged by fire or other causes and becomes unusable, if the remaining area is three-quarters or more, the full face value can be exchanged; if it is between two-fifths and less than three-quarters, half the face value can be exchanged. If the remaining area is less than two-fifths of the original area, it is considered invalid.

Also, even if the area formed by joining several pieces of banknotes meets the exchange criteria, only the areas of pieces that can be considered parts of the same banknote can be added together and exchanged according to the size of that area.

When the area of a banknote has naturally increased or decreased due to water, fire, chemicals, etc., the exchange is based on the altered area and the size of the remaining area. However, banknotes that are difficult to verify as genuine due to changes in texture, coloring, or other reasons cannot be exchanged.

In the case of coins, coins that are dented, rusted, or otherwise unsuitable for use can be exchanged for their full face value. Coins that are difficult to recognize or verify authenticity will not be exchanged.

The Bank of Korea advised, "Money burned by fire should maintain the original shape of the ashes as much as possible to minimize damage, so if money is burned, do not panic and avoid shaking off the ashes." They added, "Preserve the ashes using containers such as boxes or bowls to prevent scattering, and if the money is burned while inside a small safe, wallet, or other storage container making it difficult to separate, preserve it in the storage container as is."

Especially when a large amount of money is burned in a fire, submitting fire occurrence certificates from the relevant police station, fire department, or other administrative offices can help in determining the exchange amount.

Damaged banknotes and burned money can be exchanged at the Bank of Korea headquarters and regional offices nationwide. For damaged banknotes with easily determinable exchange amounts, exchanges can also be made at nearby banks (including NongHyup, SuHyup, and post offices).

Meanwhile, according to the Bank of Korea, in 2021, 403.52 million damaged banknotes were judged and discarded, amounting to 2.0423 trillion won in face value.

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