Counterfeit Chinese yuan surges in Korea as more Chinese visit

Exchange rates for the Chinese yuan and other currencies are displayed on a screen at a foreign exchange booth in Seoul's shopping district of Myeong-dong, Aug. 17, 2023. Yonhap

The circulation of forged Chinese yuan banknotes has increased in Korea, with the reported amount in the first half of this year already exceeding the total for all of 2024, data showed Tuesday.

This rise coincides with a rebound in Chinese tourist arrivals, which have recovered to over 90 percent of pre-COVID 19 pandemic levels.

According to data compiled by the Bank of Korea and submitted to Rep. Park Sung-hoon of the People Power Party, commercial banks reported a total of $800 in counterfeit Chinese yuan to the central bank in the first half of this year.

The amount has already surpassed the $700 reported for 2024.

The increase suggests this year's total could exceed the annual amounts recorded over the past four years, including $1,000 in 2021, $900 in 2022, and $800 in 2023.

The upward trend in counterfeit yuan detected in Korea contrasts with an overall decline in reported counterfeit foreign currencies, totaling $38,300 from January to June this year and representing less than half of last year’s annual total of $87,800.

The data also showed a significant increase in the number of reported counterfeit yuan bills.

In the first half of this year alone, 68 such bills were detected, nearly matching the full-year total of 73 reported in 2024.

At this rate, the total for 2025 is on track to exceed the annual figures recorded over the past four years, which ranged from 77 to 79 bills.

“This sharp increase in both the volume and number of counterfeit yuan bills highlights an alarming trend, especially considering the overall decline in reported counterfeit foreign currencies,” said Park, a member of the National Assembly's Strategy and Finance Committee.

The central bank said it is difficult to pinpoint the exact reasons behind the increase. “The reasons can be related to a range of factors, and do necessarily reflect specific, fundamental economic trends," it said.

While no definitive cause has been identified, some observers found the rise notable in light of the rebound in Chinese tourist arrivals.

According to the Korea Tourism Organization, 2.52 million Chinese tourists visited Korea from January to June this year.

The figure marked an increase of about 14 percent from the 2.22 million recorded during the same period last year.

At Seoul’s busy shopping district of Myeong-dong, street vendor Kim Yong-min said he has “heard about the increase in counterfeit yuan.”

When asked, he said he is not worried.

“That’s why credit cards and other forms of electronic payment are widely used, even among street vendors," he said.