Despite Longer Chuseok Holiday... This Year, Bank of Korea's Money Supply Decreases by 300 Billion Won

3.8 Trillion KRW Supplied Over 10 Business Days Before Chuseok
Annual Decline Trend as Cash Usage Decreases

On the 19th, officials are supplying Chuseok currency at the Bank of Korea Currency Receiving Center in Jung-gu, Seoul. Photo by Joint Press Corps

The Bank of Korea announced on the 27th that it supplied 3.8486 trillion won in currency to financial institutions over the 10 business days before Chuseok (September 14?27).

This amount is approximately 300 billion won (8.0%) less compared to the same period last year.

Although the Chuseok holiday period is relatively long this year at six days, the scale of currency supply has significantly decreased as cash usage gradually declines.

The Bank of Korea explained that the decrease in currency supply is mainly due to a reduction in issuance caused by weakened currency demand resulting from the expanded use of non-cash payment methods.

Looking at the currency supply and demand trends over the 10 business days before Chuseok, the net issuance amounts were 5.0679 trillion won in 2020 (5-day holiday), 4.8061 trillion won in 2021 (5-day holiday), 4.0184 trillion won last year (4-day holiday), and 3.8486 trillion won this year, showing a decreasing trend each year.