Is Korea inching toward cashless society?

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By Lee Kyung-min

Korean households have 33 percent less paper cash compared to three years earlier, amid a growing number of cashless financial transactions, central bank data showed Tuesday.

According to a 2018 survey by the Bank of Korea (BOK) of 1,100 households taken between Oct. 22 and Dec. 5 of that year, 98.2 percent had cash on hand at the time of the response, with each having an average of 78,000 won ($68).

The amount is a 33 percent decrease from 116,000 won in 2015.

Only about a quarter, or 23.3 percent, said they had cash in their homes or offices for emergencies, with each having an average of 543,000 won.

The amount decreased 22 percent from 693,000 won three years earlier.

A decreasing number of people have assets preserved in the form of cash, the survey added.

Each household had an average of 203,000 won in cash, down from 301,000 won three years ago.

As for the reason for not holding cash, over a third, or 38.7 percent, said they felt a decreasing need after the development of convenient cash transfer services.

About a quarter, or 24.3 percent, said they do not want the risk of losing cash.

Some 15.2 percent said they are less inclined to withdraw cash amid a continued rise in interest income following deposit rate hikes.

Some 14.3 percent said there are fewer goods that require cash to purchase.