Outstanding Currency Issuance Reaches 215 Trillion Won in Q1... Cooperation for a Sustainable Currency Circulation System

Currency Circulation System Council Holds Regular Meeting for First Half of the Year

The Bank of Korea announced on the 17th that the Currency Circulation System Related Agencies Council held its regular meeting for the first half of 2026 on the 12th at the Bank of Korea headquarters.

The Currency Circulation System Related Agencies Council held its regular meeting for the first half of 2026 at the Bank of Korea headquarters on the 12th. The council chairman, Ki-won Kim, Director of the Banknote Department at the Bank of Korea (center in photo), and others participated in the meeting. Bank of Korea
Photo by Bank of Korea

Although the share of cash among payment methods has been continuously declining, the amount of cash in circulation (currency issued outstanding) has been increasing each year. Due to strong demand for 50,000-won notes and other factors, the outstanding currency issuance reached approximately 215 trillion won as of the end of the first quarter of 2026. While coin circulation has remained stable since 2020, the net issuance of 10-won coins has been rapidly decreasing.

During the council meeting, it was confirmed that opposition to a 'cashless society' outweighed support, and positive opinions on institutional guarantees for the right to choose cash as a payment method are spreading.

First, the cash transportation industry reported that it has been maintaining profitability through operational efficiency measures such as optimizing cash transport routes and expanding new businesses utilizing existing infrastructure. However, it also pointed out that recent surges in oil prices have made profitability management increasingly challenging. The non-bank ATM operation industry explained that it is responding to declining cash usage by relocating ATMs based on usage patterns. Financial institutions expressed agreement on the need to maintain cash accessibility, and stated that they are working to minimize consumer inconvenience even as the trend toward reducing the number of branches continues. Some financial institutions are maintaining cash accessibility in underserved areas by expanding small-scale branch offices with no more than three employees.

Some non-bank ATM operators stated that they are striving to enhance convenience for cash users by introducing joint QR code services based on mobile cash cards and switching to barrier-free ATMs. However, they pointed out that the associated hardware replacement and software development costs are a significant burden. Regarding the issue of 'cashless stores,' some retail distribution companies mentioned that they plan to maintain cash acceptance infrastructure for customer payment convenience, but also noted that high cash management costs remain a concern.

Kim Kiwon, Director of the Bank of Korea's Issuance Department and chairman of the council, stated, "The decline in cash usage has led to deteriorating profitability for cash transportation and ATM operation companies, which could in turn reduce cash accessibility and acceptance, potentially shrinking the currency circulation system." He added, "We are acutely aware of the importance of maintaining a stable currency circulation system, and will continue to make efforts to develop effective response measures." The participants also agreed on the necessity of maintaining the currency circulation system and pledged to work toward this goal.

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