The Central Bank of South Korea plans to remove coins from circulation by 2020, in efforts to become a cashless society.
According to local reports, The Central Bank of South Korea announced on 1 December 2016 that it plans to abandon coins by 2020 to encourage the use of cashless payments.
It is encouraging citizens to deposit their loose change on the country’s “T-Money” payment cards, used to make local purchases and pay for fares in taxis and on the metro.
Technology savvy South Korea is already a leader in cashless payments, and use of cash to make payments is typically low.
Coins are considered expensive to make and process, whilst their value is low – the highest coin in South Korea is the 500 won (US$ 0.43). By removing them from circulation, the South Korean central bank and government aim to reduce coin costs with the use of cashless payments.
