On the 21st, the Korea Mint launched 'Money Pen', a product utilizing by-products from the currency manufacturing process. The transparent pen contains finely cut paper scraps of printing defects from the production of 1,000 won, 5,000 won, and 50,000 won banknotes. This repurposes the 500 tons of defective currency and blank paper that are produced annually, transforming them into a marketable product instead of incineration.
Accelerating 'Cashless Society'... Changes at the Korea Mint
Korean society is rapidly transitioning into a 'cashless society'. Cash payments account for only 10% of transactions in Korea, and the issuance of banknotes and coins has decreased by 37% and 98% respectively over the past decade. Consequently, the proportion of the Korea Mint's revenue from currency business is also sharply declining.
In response to these changes, the Korea Mint is exploring new business areas such as mobile IDs, local currency gift certificates, digital anti-counterfeiting technology development, and artistic coins. Last year, they produced and sold out a limited edition intaglio print of Gyeomjae Jeong Seon's landscape painting 'Inwangjesaekdo', utilizing currency manufacturing technology.
Global Trend Towards a 'Cashless Society'
The shift towards a cashless society is accelerating not only in Korea but also worldwide. According to a report by the fintech company Worldpay, cash transactions accounted for 16% of global payments in 2023 and are expected to decrease to 11% by 2027. Countries like Norway, Sweden, and China are leading this trend.
Concerns Over Digital Exclusion
However, there are concerns that a cashless society may lead to the exclusion of digitally vulnerable groups and low-income workers. According to a survey by the Bank of Korea, the percentage of respondents who experienced cash payment refusal increased sharply from 0.5% in 2018 to 6.9% in 2021.
Consequently, there is a growing demand to ensure the 'right to choose cash' for financially vulnerable groups. The Bank of Korea emphasized the importance of cash use, stating, "For some, cash is the only means of payment."
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