Redenomination: boon or bane?
Some consider renewed debate as 'vote-seeking' attempt By Lee Kyung-min Currency reform, more specifically “won redenomination,” has again become a political hot potato in Korea. Ever since the country joined the OECD, redenomination, which aims to change the face value of won banknotes and coins from 1,000 to 1, has become a major issue whenever a new administration takes officeThe par value of Korean currency has remained unchanged despite the rapid growth of its economy for the past 57 years. As a result, the won has the lowest face value with a four-digit exchange rate against the U.S. dollar among 35 OECD member nations.Bank of Korea (BOK) Governor Lee Ju-yeol has rekindled this age-old debate recently. At a National Assembly committee meeting in late March, he said the time was ripe to discuss the redenomination of the won. The debate is gaining further momentum after former BOK Governor Park Seung, an economic adviser to President Moon Jae-in, said in a media interview that he would suggest redenomination to the President.Experts are split over the reduction of the
