By Kim Jae-kyoung
Staff Reporter

South Koreans will not have to carry a fat wallet full of 10,000-won notes anymore, with a new 50,000 won, the highest denomination bill, going into circulation from today.

This is the first issuance of high-valued notes in 36 years since 1973 when the 10,000 won note was first introduced. Until now, 10,000 won notes were the highest-denominated bills, followed by 5,000 won and 1,000 won.

The Bank of Korea (BOK) said Monday that it will start supplying 50,000-won banknotes to local banks from 6 a.m. today.

``Individual customers will be able to withdraw new bills from ATMs from 9 a.m.,’’ a BOK official said.

However, individuals are likely to experience some inconvenience at the beginning as it will take some time for local banks to replace or upgrade their ATMs to handle 50,000-won bills at all branches due to replacement costs. It costs over 30 million won each to replace old ATMs and over 6 million won to upgrade them.

``We have set up 250 new ATMs to handle 50,000-won notes at major branches in metropolitan areas. We plan to make more 50,000-won bill ATMs available after seeing demand for the new bills,’’ a Kookmin Bank official said.

The 50,000-won banknote is expected to have a positive impact on the economy and people's daily lives. The higher-valued bills are expected to encourage private spending, stimulating the local economy. In addition, the notes may substitute for 100,000-won checks. Banks currently spend a total of 280 billion won a year to issue checks.

In contrast, there are concerns that the higher-valued notes may stoke inflationary pressure and make bribery easier.

The introduction of the 50,000-won notes came on growing demand for higher-valued notes to reduce unnecessary economic costs and minimize people’s inconvenience. The 10,000-won note has been the highest-denominated bill for the past 36 years. During that period, prices and national income jumped 12-fold and 150-fold, respectively.

Shin Saim-dang, a renowned female writer and calligraphist who died in 1551, is featured on the 50,000-won bill. The front of the bill shows artwork by, and a portrait of Shin, who was also the mother of Yulgok, one of the most respected scholars of the Joseon Dynasty (1392-1910).

The new yellow-toned bill is equipped with advanced anti-forgery features, such as security thread, hologram stripe, watermark and intaglio rainbow printing.

kjk@koreatimes.co.kr