Key dates in North Korea's currency reforms

SEOUL, Dec. 1 (Yonhap) -- The following is a chronology of North Korea's currency
reforms and their purpose as provided by South Korea's Unification Ministry.

Dec. 1947 -- Months after establishing its Soviet-backed government separately
from pro-U.S. South Korea in September, North Korea conducts its first currency
reform, ending the monetary legacy of Japan's 1910-45 colonial occupation of the
Korean Peninsula. The reform replaced banknotes issued during the colonial era
with new notes issued by the North's Central Bank on an one-to-one principle.

Feb. 13, 1959 -- The second currency reform takes effect to curb inflation caused
by the 1950-53 Korean War, refresh the financial management system and equip the
government with investment resources for state-led post-war development. The
exchange rate was 100 to 1.

April 7, 1979 -- The third reform is implemented with a 1 to 1 rate. Government
institutions, businesses and cooperative organizations deposited their reserves
of old denominations in banks and received new banknotes.

July 15, 1992 -- The fourth reform takes effect with the aim of consolidating the
local currency system. The Central Bank begins issuance of five types of new
banknotes valued at 100 won, 50 won, 10 won and 1 won. The exchange rate was 1 to
1.

Nov. 30, 2009 -- North Korea reportedly conducts its fifth currency reform,
sharply raising the value of its currency in an apparent bid to tackle inflation
and curb black market trading. The exchange rate for the new currency is
allegedly 100 to 1, in which the old denomination of 1,000 won is replaced by the
new 10 won.
A U.S. dollar was equal to 135 won in North Korea's fixed foreign exchange system
before adjustment.
hkim@yna.co.kr
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