Cash transport officials prepare to supply funds to banks ahead of the Lunar New Year on February 11, 2026, at the Bank of Korea headquarters in Jung-gu, Seoul. 2026.02.11[Photo=Joint Press Corps]
The Bank of Korea is facing increased pressure to maintain the currency circulation system due to a decline in cash usage and rising oil prices. On May 17, the bank announced that it discussed response measures with industry stakeholders during the regular meeting of the Currency Circulation System Related Institutions Council held on May 12.
According to the Bank of Korea, while the proportion of cash as a payment method continues to decrease, the total amount of cash in circulation has been on the rise. As of the end of the first quarter of this year, the total currency issuance was approximately 215 trillion won, with steady demand for 50,000 won notes.
In contrast, the circulation of coins has been declining since 2020, with a rapid reduction in the net issuance of 10 won coins.
Kim Gi-won, head of the Bank of Korea's Currency Issuance Division, stated, "The decrease in cash usage is negatively impacting the profitability of cash transport and ATM operating companies. If this trend leads to reduced accessibility and acceptance of cash, there is a risk that the currency circulation system itself could contract."
Participants in the meeting shared concerns that rising oil prices are increasing the cost burden on cash transport companies. Although the cash transport industry is working to defend its profitability through route optimization and expansion of new businesses, the surge in oil prices is exacerbating management challenges.
A Bank of Korea official emphasized, "Maintaining a stable currency circulation system is a key responsibility of the central bank," adding that they plan to strengthen cooperation with relevant institutions and develop effective response measures.
* This article has been translated by AI.
According to the Bank of Korea, while the proportion of cash as a payment method continues to decrease, the total amount of cash in circulation has been on the rise. As of the end of the first quarter of this year, the total currency issuance was approximately 215 trillion won, with steady demand for 50,000 won notes.
In contrast, the circulation of coins has been declining since 2020, with a rapid reduction in the net issuance of 10 won coins.
Kim Gi-won, head of the Bank of Korea's Currency Issuance Division, stated, "The decrease in cash usage is negatively impacting the profitability of cash transport and ATM operating companies. If this trend leads to reduced accessibility and acceptance of cash, there is a risk that the currency circulation system itself could contract."
Participants in the meeting shared concerns that rising oil prices are increasing the cost burden on cash transport companies. Although the cash transport industry is working to defend its profitability through route optimization and expansion of new businesses, the surge in oil prices is exacerbating management challenges.
A Bank of Korea official emphasized, "Maintaining a stable currency circulation system is a key responsibility of the central bank," adding that they plan to strengthen cooperation with relevant institutions and develop effective response measures.
* This article has been translated by AI.
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