Surge in Counterfeit Yuan as Influx of Chinese Tourists Approaches

Surpassing Last Year's Reported Amount in Just Six Months
Shift from Annual Decline Since 2021 to a Sudden Increase

Illustration of Chinese tourists (photo to aid article understanding). Asia Economy DB

This year, cases of counterfeiting and forgery involving Chinese yuan have surged in South Korea. With the temporary visa-free entry policy for Chinese tourists set to be implemented on September 29, there are growing calls for prompt countermeasures.

According to data submitted by the office of Park Sunghoon, a member of the National Assembly's Planning and Finance Committee from the People Power Party, and obtained from the Bank of Korea on September 16, the amount of counterfeit and forged yuan reported by domestic banks to the Bank of Korea reached a total of 800 US dollars as of the end of June this year. This already surpasses the 700 US dollars reported for all of last year.

The annual amount of counterfeit and forged yuan had been on a downward trend each year. It fell from 1,000 US dollars in 2021 to 900 US dollars in 2022, 800 US dollars in 2023, and 700 US dollars in 2024, decreasing by about 100 US dollars each year. However, in just the first half of this year, it has already jumped to 800 US dollars.

The prevailing view is that the sharp increase in counterfeit and forged yuan this year is not unrelated to the rise in Chinese tourist visits to South Korea. According to the Korea Tourism Organization's Data Lab, the number of Chinese tourists visiting South Korea reached approximately 2,527,000 by the end of June this year, a 14% increase compared to the same period last year (about 2,219,000).

Chinese tourists account for the largest share among foreign visitors to South Korea. In the first half of this year, Chinese nationals made up 28.6% of all foreign tourists, ranking first. Last year, out of a total of 16.36 million foreign visitors, 4.91 million were Chinese. With the industry predicting that the implementation of the visa-free policy could help achieve not only 20 million but possibly even 30 million foreign tourists this year, there is a growing need to strengthen measures to prevent the influx of counterfeit foreign currency.

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