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South Korea To Kill the Coin in Path Towards ‘Cashless Society’

The central bank in South Korea, one of the world’s most technologically advanced and integrated nations, is taking a major step in getting rid of coins in the nation in what is an attempt to become a cashless society. The first step is to get rid of the metal, a feat authorities hope to achieve by 2020. From a report on FT: The Bank of Korea on Thursday announced it will step up its efforts to reduce the circulation of coins, the highest denomination of which is worth less than $0.50. As part of the plan it wants consumers to deposit loose change on to Korea’s ubiquitous “T Money” cards — electronic travel passes that can be used to pay for metro fares, taxi rides and even purchases in 30,000 convenience stores. The proposals are just the latest step for a nation at the forefront of harnessing technology to make citizens’ lives more convenient. Online shopping is the norm, as are mobile payments for the country’s tech-savvy millennials. South Korea is already one of the least cash-dependent nations in the world. It has among the highest rates of credit card ownership — about 1.9 per citizen — and only about 20 percent of Korean payments are made using paper money, according to the BoK. But while convenience is at the crux of the central bank’s plan, there are other considerations. The BoK spends more than $40m a year minting coins. There are also costs involved for financial institutions that collect, manage and circulate them.


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