S. Korea eyes redenomination<\/p>\n
Agence France-Presse, Seoul<\/p>\n
South Korea's central bank is pushing for a 1,000-for-one
\ncurrency redenomination to take place in the next three to five
\nyears, news reports and officials said on Tuesday.<\/p>\n
The Bank of Korea has already worked out a detailed plan on
\nchanging the face value of a current 1,000 won (about 90 U.S.
\ncents) note into one won, said the Chosun Ilbo, the largest-
\ncirculation daily in South Korea.<\/p>\n
Officials at the bank confirmed that they had worked out
\ndetails on the proposed currency reform but refused to elaborate.<\/p>\n
\"The Bank of Korea has completed its two-year study about
\ncurrency redenomination on which the government and the
\nparliamentary should decide,\" Jeong Nam Seok, head of the
\ncurrency issue policy team, said.<\/p>\n
Later the central bank issued a statement saying it was
\ninappropriate to talk about implementation of the matter at this
\nstage.<\/p>\n
\"It's an issue subject to a mid- to long-term study. It's
\ninappropriate to discuss whether to implement it or not for now
\nas there are lots of policy tasks that take priority.\"<\/p>\n
The currency redenomination would reflect the economic growth
\nof South Korea, now the world's 12th largest trading nation, and
\nreduce the costs of issuing high-denomination notes and checks.<\/p>\n
South Korea and Turkey are the only two Organization for
\nEconomic Cooperation and Development members with a four-digit
\nexchange rate with the U.S. dollar.<\/p>\n
The central bank is also considering changing the currency
\nname after the redenomination and reducing the size of notes and
\ncoins, Chosun Ilbo said.<\/p>\n
The bank has already ordered new minting machines in
\npreparation for the printing of the new money from September next
\nyear, if necessary, the newspaper said.<\/p>\n
The bank, in talks with the government to carry out the
\ncurrency redenomination, plans to hold public hearings to promote
\nthe issue, it said.<\/p>\n
The bank will eventually revise relevant laws and implement
\nthe currency reform after three to five years of preparation.<\/p>\n
The won currently trades around 1,145 against the dollar.<\/p>\n
Yonhap news agency said the currency reform would cost an
\nestimated 250 billion won (US$218 million).<\/p>\n
South Korea went through two major currency reforms in the
\npast, a 100-for-one currency redenomination in 1953 after the war
\nwith North Korea and a 10-for-one currency swap in 1962.<\/p>",
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