Is it due to the increased demand for cash ahead of Chuseok?

Recently, '50,000 won notes' in commercial banks are in short supply. 



It is even called the'Shinsaimdang disappearance situation' online.

It is said that more and more automated teller machines (ATMs) that cannot withdraw 50,000 won notes are increasing, and the amount of withdrawal of 50,000 won notes per person is limited even if you go to a bank to find cash. 




In some banks, there was an incident to inform'fake news' that "the Bank of Korea temporarily stopped issuing 50,000 won notes and withdrawals of 50,000 won from ATMs may not be possible." 



The Bank of Korea announced that it had increased the issuance of 50,000 won notes until last August this year.

Over the past 8 months, the amount of 50,000 won (KRW 16,5827 billion) was slightly higher than the same period last year (KRW 16,3211 billion).




50,000 won notes issued by the Bank of Korea are usually distributed in the direction of'Bank of Korea → commercial banks → corporations or individuals → banks or financial institutions → Bank of Korea'.

The 50,000 won notes that were circulated in the market are returned to the Bank of Korea. 



The Bank of Korea pointed out that the significant drop in the recovery rate of 50,000 won by August this year is the main cause of the'Shinsaimdang disappearance'. 



Until August this year, the total issuance of 50,000 won was KRW 16,572.8 billion, and the amount returned to the Bank of Korea vault was KRW 4,914.4 billion.

The exchange rate was only 29.6%. 




It is said that the exchange rate of 100 dollars, the highest denomination currency in the United States, was 77.6% last year, and over 90% of the eurozone's highest denomination currency, 500 euros, is steadily maintained.

It can be said that Korea's 50,000 won exchange rate is extremely low.



An official from the Bank of Korea explained, "In this year, the exchange rate may have fallen as the demand for reserves to hold money increased due to the economic shock from the Corona 19 incident."



In addition, some financial sector officials analyze that "50,000 won may be buried in the underground economy such as tax evasion transactions or voice transactions." 



This is'News Pick'.