By Kim Yon-se
Staff Reporter
The issuance of higher-denomination bills, 100,000-won and 50,000-won banknotes, could bring about a whole variety of forms of corruption, a presidential anti-corruption agency said Tuesday.
The Korea Independent Commission Against Corruption (KICAC) called on the Bank of Korea (BOK) and the Ministry of Finance and Economy (MOCIE) to set up countermeasures against possible irregular practices before issuance.
Among the possible side effects from the issuance of higher-denomination bills, are fostering slush funds, bribery scandal and forgery.
The warning from the anti-corruption commission is expected to invite debates from pros and cons. The BOK has decided to issue the 50,000-won and 100,000-won bills as early as 2009.
Furthermore, citing the poor index for Korea's national anti-corruption ranking, the commission said the central bank and finance-economy ministry should revise the timing of issuance, and consider issuing on a gradual basis.
The KICAC expressed its anxiety over smaller volume. An official took an example in which five apple boxes are needed for filling 1 billion won with 10,000-won notes, and only one briefcase is needed for 1 billion won with 100,000-won notes.
The pro-government Uri Party has pushed ahead with introducing the 50,000-won and 100,000-won notes, saying higher-denomination bills, especially 100,000-won bills, should be introduced not only to cut check-issuance costs, but to strike a balance between bill denominations and the enlarged economy, as well.
In 2004, 11 ruling- and opposition-party lawmakers submitted the currency revision bill to the National Assembly.
The BOK and the Korea Minting and Security Printing Corp. have nearly completed the preparations, including designs for the issuance.
Many people regard the value of the highest denomination bill, currently 10,000 won, as too low, given the country's economic scale and high consumer prices. Citing concerns about inflation and forgery, the government had opposed the idea, but gave up its objections late last year.
The highest denomination in the country's currency is the 10,000-won bill, which debuted 34 years ago. Since, the country's consumer prices have jumped 12 times, and household income has grown 150 times, according to the BOK.