Understanding North Korea Currency and Economy

North Korea's currency, the North Korean Won, is not widely traded or accepted outside of the country. It's pegged to the Chinese Yuan, which is the primary currency used in international transactions.

The North Korean economy is heavily controlled by the government, with a centralized planning system in place to manage production and distribution of goods. This has led to a lack of economic freedom for citizens.

The country has a significant trade deficit, relying heavily on imports to meet its energy and food needs. This has put a strain on the economy, with many citizens struggling to afford basic necessities.

The government has implemented various measures to control inflation, including price controls and rationing of essential goods.

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The official currency of North Korea is the DPRK Won, also known as the KPW. The KPW was made the official currency on December 6th, 1947.

It replaced the Korean Yen, which was in circulation during the Japanese occupation of Korea during World War II. The Korean Yen is no longer used as a currency.

The official currency is known in Korean as: 조선민주주의인민공화국 원 or ₩. There have been three incarnations of the won since its inception.

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The North Korean currency has a rich history, with its first iteration, the North Korean Won, being introduced on December 6, 1947. This replaced the Korean Yen that was in circulation at the time.

The North Korean government initially pegged the value of the North Korean Won at 2.16 won to the dollar, but this was removed in 2001. This change allowed foreigners to pay in hard foreign currency.

In 2009, the North Korean Won underwent a revaluation, which proved a difficult time for Koreans. North Koreans were given a limited time to exchange their old currency for the new one.

The current series of banknotes first circulated in 2009, following the currency reform. The new edition of the 5000 North Korean Won note features a new image.

Here's a brief rundown of the different currencies that have been used in North Korea:

The North Korean currency is a fascinating topic, and its design is a reflection of the country's history and politics. The front of the ₩5 North Korean Won features members of the Workers' Party of Korea.

The Workers' Party of Korea is the founding and ruling party of North Korea, and it's led by Kim Jong Un, the Chairman of the party. This is a significant aspect of the country's identity.

The back of the ₩5 North Korean Won shows the Hwanggang Hydroelectric Dam, located near the demilitarized zone (DMZ) on the North-South Korean border.

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The North Korean currency has a rich and complex history. The North Korean Won became the official currency on December 6, 1947, replacing the Korean Yen.

Initially, the North Korean Won was only intended for exclusive use by North Koreans. Foreigners visiting the country were issued a separate currency, which was further divided depending on their country of origin.

The currency used by foreigners from socialist countries was red, while those from capitalist countries used blue or green currency. This practice was eventually abolished in 2001.

The North Korean government pegged the value of the Won at 2.16 to the dollar until 2001. In 2009, the North Korean Won underwent a revaluation, which proved a difficult time for Koreans.

North Koreans were given a limited time to exchange their old notes for new ones. The old notes ceased to be legal tender on November 30th, 2009.

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The history of coins on the Korean peninsula dates back to around 3000 BC, with the first coins reportedly used being knife coins of the state of Yan.

Grain coins were then used on the peninsula for several centuries. The Kingdom of Goryeo was the first entity on Korea to introduce its own coins, which were very similar in appearance to Chinese coins of the period.

Around 1097, Goryeo's coins began specifying they held Korean origin, and the first iron coins became minted and used.

Goryeo continued to issue coins until it was overthrown by Joseon in 1392. King Taejong attempted to improve the monetary system in his kingdom, but was not immediately successful.

A total of 24 mints were established on the Korean peninsula during the 17th century, which was a significant increase in coin production. The mun was made the main currency of Korea in 1633, and copper and bronze coins of this currency unit circulated until 1892.

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The mun was eventually replaced by the yang in 1892, with copper and bronze coins of this currency unit circulating until 1902. The yang was then replaced by the won in 1902, with a conversion rate of 1 won = 5 yang.

The won continued to be issued into the early years of the Korean Empire. In 1910, the yen was introduced on the peninsula following the annexation of Korea by the Empire of Japan.

Here is a brief overview of the different currencies used in Korea:

In North Korea, the Chinese RMB is widely used and preferred by locals, making it easier to receive change in this currency. The Chinese RMB is also conveniently accessible as you'll be passing through China en route to North Korea in most cases.

The Euro is another widely accepted currency, and it's the ideal currency for souvenir purchases and optional entry fees. Most souvenirs are ticketed in EUR, and paying in the ticketed currency will give you the best rate.

It's best to bring a variety of low denomination notes in each currency, such as RMB, USD, and EUR, to make transactions easier. Large notes, especially USD, can be difficult to break, so it's best to avoid them.

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The Chinese Renminbi (RMB) is the most flexible currency for tourists in North Korea, with small banknote denominations and plentiful change.

You'll often receive a mixture of currencies in change, so it's a good idea to bring a variety of each in low denomination notes.

RMB is convenient to access as you'll likely be passing through China en route to North Korea. It's also the preferred currency by locals.

The Euro (EUR) is North Korea's 'default' foreign currency, ideal for souvenir purchases and optional entry fees like performance tickets.

Most souvenirs are ticketed in EUR, so it's best to pay in the ticketed currency for the best rate. No conversion will be required when paying entry fees with EUR.

The United States Dollar (USD) is useful for incidentals like snacks, drinks, and small souvenirs. It's recommended to bring a stack of 1 USD bills, but be aware that damaged or worn notes won't be accepted.

Don't bring large notes (50/100 USD or EUR) as they'll be difficult to break.

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In Korea, you can purchase souvenir collections of currency, which is a great way to remember your trip. These collections usually include full sets of uncirculated banknotes and coins.

You can buy souvenir currency collections at various shops and markets, making it easy to find one that suits your taste and budget.

Private commerce in North Korea is a relatively new concept, with experimentation beginning in the Rason Special Economic Zone in 1991.

North Korea has established a few Special Administrative Regions, including the Kaesong Industrial Region in 2002.

A small number of locations have been designated as such, allowing for some capitalistic elements to spread.

Certain capitalistic elements have been gradually spreading from Rason, including a number of advertising billboards displayed on certain highways.

The number of farmers' markets has increased in Kaesong and Pyongyang, as well as on the China-North Korea border, thus bypassing the national food rationing system.

China reportedly provides approximately 80 to 90 percent of North Korea's oil imports at relatively low prices.

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The North Korean currency, known as the won, has a complex history. The current incarnation of the won was brought about by a 2009 revaluation of the currency.

Old notes were no longer legal tender after November 30, 2009, and the new notes didn't start circulation until December 7, 2009. This revaluation was extremely controversial and contentious.

The highest denomination Korean won note, the ₩5000, was redesigned in 2014 to remove the face of Kim Il Sung and replace it with his native birth house in Manggyongdae and the International Friendship Exhibition located at Mt. Myohyang.

The value of the Won has changed significantly over the years. Historically, it was tied to the USD with a symbolic rate of 2.16, but this rate was abandoned in 2001.

Today, the current rate is much different, with approximately 9,000 won to 1 USD. This means that the value of the Won has decreased substantially.

The North Korean government has implemented currency revaluations in the past, with the most recent one happening in 2009. This revaluation was done to control price inflation, private markets, and black market money traders.

The old notes from the pre-revaluation era were withdrawn on November 30th, 2009, and the new notes were introduced on December 7th of the same year. This sudden change caused a week of collective panic in the country.

Common banknotes in circulation include the ₩100, ₩200, ₩500, ₩1000, ₩2000, and ₩5000.

North Korea's economy is heavily reliant on trade with its neighbors, particularly China and South Korea. China accounts for approximately 70% of North Korea's foreign trade.

In 2005, trade with China reached a significant milestone of $1.6 billion, while trade with South Korea exceeded $1 billion during the same year. The North Korean government has taken steps to engage with the global economy, establishing the Center for the Study of the Capitalist System in 2000.

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Foreign investors have also set up joint ventures in North Korea, with the Swiss government even establishing the Pyongyang Business School to teach business management. One notable example is Nosotek, a freelance computer programming employment opportunity that was founded in 2008.

The North Korean currency, the won, is considered a "soft" currency that can't be exchanged for "hard" currencies like the US dollar or euro. In fact, the euro was chosen as the preferred currency for international trade due to its lower cost.

You can't take North Korean currency out of the country, so be prepared to spend it all during your trip. Your guides will politely ask you to do so, and you can even give them the leftovers as a tip.

You can use North Korean money in North Korea, but it's not the preferred currency, and you might even get change in Chinese RMB or other currencies instead.

The North Korean currency, the won, is considered a "soft" currency that can't be exchanged for "hard" currencies like USD or EURO, which is why it's not widely accepted.

In fact, the government encourages you to spend all your won while you're in the country, and you can even give leftovers to your guides as a tip.

It's not permitted to take North Korean currency out of the country, but you can buy souvenir collections of uncirculated banknotes and coins to take home instead.

Be sure to buy these souvenirs in North Korea and not at knock-off stores on the border in China, as the real deal is only available in-country.

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