97% of Wallets Disappeared Because of 'Igeot'... The 100,000 Won Bill Disappearance Incident

Number of 100,000 Won Check Transactions Down 21% Year-on-Year
50,000 Won Checks Free from Risks Like Endorsement and Dishonor
Widespread Use of Credit Cards, Pay, and Mobile Payments Also Contributes

With the widespread use of 50,000 won bills and credit card and mobile payments, the usage of 100,000 won checks has sharply declined.

According to the Bank of Korea and the Korea Financial Telecommunications & Clearings Institute on the 2nd, the daily average number of 100,000 won cashier's check transactions last year was 110,400, down 21.6% from 145,000 transactions the previous year.

The daily average number and amount of fixed-amount cashier's checks, including the 100,000 won denomination, also decreased by 16.7% and 9.9%, respectively, from 223,000 transactions and 92 billion won in 2021 to 186,000 transactions and 83 billion won last year. The transaction amount also fell by 21.6%, from 14 billion won to 11 billion won during the same period.

The use of 100,000 won checks rapidly declined after the introduction of the 50,000 won bill in June 2009.

The daily average number of check transactions in 2008 was 3,742,000. This means usage decreased by 97% over 14 years.

The 50,000 won bill quickly caught up with the demand for cashier's checks because it does not require the inconvenience of signing on the back of the check or other certificates for transfer to another person, and there is no risk of fund tracing or dishonor.

[Image source=Yonhap News]

The replacement of 100,000 won checks is also attributed to the expansion of 50,000 won bill usage and the development of electronic payment methods such as credit cards and mobile pay. As pay payments using smart devices expand, the use of cashier's checks, including the 100,000 won denomination, is expected to continue declining.

Card payments are also steadily increasing. Last year, the daily average number of payment card transactions, including credit cards, check cards, and prepaid cards, was 734,530, up 9.8% from the previous year, and the transaction amount was 3.266 trillion won, up 12.3%.

Meanwhile, the daily average number of all cashier's check transactions, including non-fixed amounts, decreased from 259,000 in 2021 to 224,000 last year, but the transaction amount slightly increased from 1.206 trillion won to 1.244 trillion won.

Non-fixed amount checks are mainly used by companies conducting high-value transactions, and the relatively slow decline is interpreted as due to commercial customs that continue to use previous payment methods.

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