The Development of Currency in Korea

The development of currency in Korea largely depended on the historical issues. Many obstacles such as division of the Three Kingdoms, Japanese occupation, and Korean War that led to the division of South and North Korea affected the development of money. One event after another actually slowed or changed the forms and values of currency.

The idea of trading goods and use of money was started beginning with the Three Kingdoms, which was around 57 BC. The Three Kingdoms of Korea were composed of three countries, Goguryeo, Silla, and Baekje. People in these three countries were all from the same ancestors, but lived apart and fought each other in economic, geologic, and military issues. However, all the citizens and royal family in these countries used the same type of money such as coins and the same methods of trading.

Around 57 BC to 87 BC, Goguryeo, the strongest and most developed country, traded efficiently with the other two nations. Because Goguryeo was located in the upper part of Korea and surrounded by many rocky mountains, they usually traded different types of minerals especially iron and copper for mainly grains and silk goods. They sometime traded goods for land or place. About 78 BC,1 Goguryeo gave free iron to Silla, located in the south part of Korea, and asked them to allow Goguryeo workers to build a Buddhist temple on Silla’s property. The requests succeeded, and finally Goguryeo took ten years to build the famous temple. As in this example, the development of trading goods in Korea developed in various ways over time.

Korea started to develop different types of money after the Three Kingdoms, during the period of Joseon. Korea developed its society and actual currency that all citizens used.2 There were no more public or formal trades between people or countries, but uses of money progressed. However, the development of money in Korea fell into misfortune when Japan conquered it. Not only did many innocent people die, but Korea’s economy, society, military, and currency were also demolished.

Because the currency was lost, people started to trade each other informally and secretly. They did not wish to use Japanese money so they developed a “black market” which Japanese soldiers did not know about. These trades were maintain with not only clothes and food, but also books and newspapers which were printed in Korean. Citizens had no hope of re-attaining their own society or even their currency.

However, in August 1945,3 Japan was defeated by the Unitied States, and finally Korea got its country back. A few years later, the happiness throughout the country did not last because of the Korean War. North Korea invaded the south with forces. At this time, money was not demolished, but remained undeveloped. When the Korean War was over in 1953, the society of South Korea was developed gradually, and the use of money increased.4 People started to get money from work, and uses of banks increased. It was the start of the development of modern currency.

In conclusion, it is clear that the trading goods or use of money started to develop a long time ago. Before the arrival of money, Korean traded goods such as mining, silk materials, grain, and sometime land. These developments were not just happen but with many efforts of citizens overcoming harsh historical events such as invasions, wars, and divisions. So people must understand how honorable the efforts were to make living easier for modern Korean society. (599)

Sam Jeong

1 http://en.wikipedia.org/wiki/Korea
2 http://www.paulnoll.com/Korea/war-Korea-money-choices.html
3 http://www.asianinfo.org/asianinfo/korea/history.htm
4 http://www.koreanhistoryproject.org/