Institutions over timeAD 996 – 19058 events

History of Korean Currency

From Geonwon Jungbo to the 1905 currency reform — how coins took hold in an economy of rice and cloth, and how monetary sovereignty was lost

상평통보 — 1문·2문·5문, 그리고 흥선 대원군 때의 100문(당백전)
상평통보 — 1문·2문·5문, 그리고 흥선 대원군 때의 100문(당백전)

Donald Trung Quoc Don · CC BY-SA 4.0 · Source

At a glance

CurrencyWhen · rulerFeaturesOutcome
Geonwon JungboGoryeo, Seongjong 996First iron coin; "Dongguk" on backLittle used
Silver vase · Haedong TongboSukjong 1101 · 1102Mint (Uicheon); vase shaped like KoreaElites only; people kept barter
JeohwaJoseon, Taejong 1401Mulberry paper money; SaseomseoLost out to rice and cloth
Joseon TongboSejong 1423Copper coin alongside paper moneyLittle used
Sangpyeong TongboInjo 1633 → legal tender 1678Nationwide; taxes and rents in coinCoin shortage; calls to abolish
DangbaekjeonHeungseon Daewongun 1866Face value 100 times the coinInflation; stopped next year
Mint — dangojeon, nickel coins1883 – 1904Dangojeon (1883); excess nickel coinsCurrency debased
Currency reform1905, MegataNickel coins → Daiichi Bank notes, gradedKorean merchants ruined; finance subordinated

The theme on the map

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8 events in this theme

  1. Under Seongjong, Goryeo cast the iron Geonwon Jungbo, the first metal currency issued by a Korean state.

  2. At Uicheon’s urging, King Sukjong set up a mint that issued silver vases (hwalgu) and coins such as Haedong tongbo, but in a largely self-sufficient economy they did not circulate widely.

  3. Taejong set up the Saseomseo office and issued jeohwa, paper money made from mulberry bark.

  4. Sejong had the Joseon Tongbo copper coin made to circulate alongside paper money, but it lost out to rice and cloth.

  5. On the advice of Heo Jeok and others, Sukjong made the Sangpyeong tongbo the legal coinage and had it minted widely; by the late 18th century it circulated nationwide.

  6. To pay for rebuilding Gyeongbokgung, the Heungseon Daewongun issued the dangbaekjeon, a coin rated at 100 times the Sangpyeong Tongbo, setting off steep inflation.

  7. The Joseon government set up the Jeonhwanguk mint and issued the dangojeon coin. The nickel coins later minted there in excess became the pretext for the 1905 currency reform.

  8. The Japanese financial adviser Megata had the Korean Empire’s nickel coins and copper cash exchanged for notes of Japan’s Dai-Ichi Bank. Korean merchants and banks were badly hurt and Korea’s finances were tied to Japan.

Key people

  • Gojong1852 – 1919

    Twenty-sixth king of Joseon and first emperor of the Korean Empire

  • King SeongjongAD 960 – AD 997

    Sixth king of Goryeo, who adopted Choe Seung-ro’s 28-article memorial and built a Confucian central and local administration

  • King Sukjong1054 – 1105

    Fifteenth king of Goryeo, who minted coins such as Haedong tongbo and created the Byeolmuban army

  • Uicheon (National Preceptor Daegak)1055 – 1101

    Royal monk, son of Munjong, who studied in Song, compiled the Gyojang and founded the Cheontae school in Goryeo

  • Taejong (Yi Bang-won)1367 – 1422

    Third king of Joseon, who seized power in the Strifes of Princes and strengthened royal authority

  • Sejong the Great1397 – 1450

    Fourth king of Joseon, creator of Hangul, patron of science and of the northern frontier

  • Sukjong1661 – 1720

    Nineteenth king of Joseon, who used factional reversals to strengthen the throne

  • Heo Jeok1610 – 1680

    Southerner chief state councillor who had the Sangpyeong tongbo coin minted for general use; ousted and executed in the 1680 change of power

  • Heungseon Daewongun1820 – 1898

    Gojong's father and regent, who rebuilt Gyeongbokgung and rejected Western trade

  • Kim Ok-gyun1851 – 1894

    Radical reformer who led the 1884 coup, fled to Japan and was assassinated in Shanghai

  • Megata Tanetarō1853 – 1926

    Japanese official made financial adviser to the Korean Empire by the first Japan–Korea Agreement; carried out the 1905 currency reorganization