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South Korean won

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South Korean won
대한민국 원 (Korean)
大韓民國 원1 (Hanja)
Image:Currency-rok.jpg
Currently circulating coins and banknotes
ISO 4217 Code KRW
User(s) Republic of Korea
Inflation 2.5%
Source Bank of Korea, Jan ~ Feb 2006
Method CPI
Subunit
1/100 jeon (전/錢)
Subunits are rarely used
Symbol
Plural The language(s) of this currency does not have a morphological plural distinction.
Coins
Freq. used ₩10, ₩50, ₩100, ₩500
Rarely used ₩1, ₩5
Cash transactions are legally round to the nearest ₩10
Banknotes ₩1000, ₩5000, ₩10000
Central bank Bank of Korea
Website www.bok.or.kr
Printer Korea Minting and Security Printing Corporation
Website www.komsep.com
Mint Korea Minting and Security Printing Corporation
Website www.komsep.com
  1. The old won's hanja is but the new one is not written in Hanja.

The won is the currency of South Korea. It is subdivided into 100 jeon, although denominations in jeon are no longer used. The Latinised symbol for won, ₩, is made of a letter W with an equal mark ("="), which replaces the backslash character("\") on standard Korean keyboards.

Contents

[edit] Etymology

"Won" is a cognate of the Chinese yuan and Japanese yen. All three names derive from the Chinese character , which means "round shape." The won was subdivided into 100 jeon (hangul: 전; hanja: 錢; revised: jeon; McCune-Reischauer: chŏn), which means "money."

[edit] History

The won was first used as Korea's currency between 1902 and 1910. It was replaced at par by the yen, made up of the Japanese currency and banknotes of the Korean yen.

In 1945, Korea was divided, resulting in separate currencies, both called won, for the South and the North. Both the Southern won and Northern won replaced the yen at par.

The first South Korean won was subdivided into 100 jeon. Only banknotes were issued. Initially, the won was issued by Bank of Joseon, with a similar design to the older notes of the Japanese occupation period. However, there were two subtle and important differences. The new notes replaced the paulownia, the badge of the government of Japan, with the Rose of Sharon, South Korea's national flower; and the clause about exchangeability with the Japanese yen was removed. A new central bank, Bank of Korea was established in 1950, and assumed the duties of Bank of Joseon.

This won was replaced by the hwan on February 15 1953 at a rate of 1 hwan = 100 won. The won was reintroduced on June 9 1962 at a rate of 1 won = 10 hwan. It became the sole legal tender on March 22 1975. Its ISO 4217 code is KRW.

[edit] Current status

The highest valued bill, the 10,000 won note, is worth only approximately US$11.<ref>As of December 3 2006, KRW 10,000 was equal to USD 10.85. Universal Currency Converter. Retrieved on 2006-12-03.</ref> Larger transactions are commonly handled by 100,000 won bank checks, dispensed from ATMs. South Koreans use electronic means of payment, intra-bank transfers, and credit cards, to a greater extent than even in the U.S. On the other hand, debit cards are not accepted for payment in businesses.[citation needed]

Due to the low value of the won, redenomination or the idea of issuing 50,000 won and 100,000 won notes has been discussed. However, in October 2006, the Ministry of Finance and Economy ruled out currency redenomination for fear of "negative impact on the economy" such as "inflationary pressure and destabilization of the real estate market". <ref>"Ministry Rules Out Re-Denomination of Currency", The Korea Times, 2006-10-09. Retrieved on 2006-10-17.</ref>

[edit] Denominations

[edit] Series designation

The Bank of Korea designates banknote and coin series in an interesting way. Instead of putting those of similar design and issue dates in the same series, they assign series number X to the Xth design of for each individual value. The series number are expressed with korean letters used in alphabetical order, e.g. 가, 나, 다, 라, 마, 바, 사... Therefore, ₩1000 issued in 1983 is series II (나) because it is the second design of all ₩1000 designs since the won introduction in 1962.

[edit] Coins

[edit] 1966-1972 issued coins

The first coins were put in circulation on August 16 1966. They were all made of brass and had a face value of 1, 5, and 10 won, replacing the equivalent valued banknotes used at the time. Those were the first coins minted since the reintroduction of the won in 1962. They were also the first Bank of Korea's coins to display the year in term of Common era, compare to the hwan coins which had the minted year according to the Korean calendar. The 1 and 5 won coins also came to replace the 10 and 50 hwan coins that were still in circulation along the newly issued banknotes. Those two hwan coins were finally declared no longer legal tender on March 22 1975.<ref name=issue>Currency Issue System. Bank of Korea. Retrieved on 2006-11-09.</ref>

In 1968, as the intrinsic value of the brass 1 won coin far surpassed its face value, new aluminium 1 won coins were issued to replace them. As an attempt to further reduced currency production costs, new 5 won and 10 won coins were issued in 1970, using a different composition of brass. The 100 won notes were replaced later that year by 100 won coins, and 50 won notes were also replaced in the same way in 1972.<ref name=issue />

1966-1972 issued coins [1] [2] (Korean)
Image Value Technical parameters Description Date of BOK Series Designation
Obverse Reverse Diameter Mass Composition Edge Obverse Reverse first minting issue withdrawal
Image:1 won 1966 observe.jpg Image:1 won 1966 reverse.jpg ₩1 17.2 mm 1.7 g Brass
60% copper
40% zinc
Plain Rose of Sharon, value, bank title (hangul) Value (digit), bank title, year of minting 1966 August 16 1966 December 1 1980 Serie I (가)
Image:1 won 1968 observe.jpg Image:1 won 1968 reverse.jpg ₩1 17.2 mm 0.729 g 100% aluminium Plain Rose of Sharon, value, bank title (hangul) Value (digit), bank title, year of minting 1968 August 26 1968 Still circulating Serie II (나)
Image:5 won 1966 observe.jpg Image:5 won 1966 reverse.jpg ₩5 20.4 mm 3.9 g Brass
88% copper
12% zinc
Plain Geobukseon, value, bank title (hangul) Value (digit), bank title, year of minting 1966 August 16 1966 Still circulating Serie I (가)
Image:5 won 1970 observe.jpg Image:5 won 1970 reverse.jpg ₩5 20.4 mm 2.95 g High brass
65% copper
35% zinc
Plain Geobukseon, value, bank title (hangul) Value (digit), bank title, year of minting 1970 July 16 1970 Still circulating Serie II (나)
Image:10 won 1966 observe.jpg Image:10 won 1966 reverse.jpg ₩10 22.86 mm 4.22 g Brass
88% copper
12% zinc
Plain Dabotap Pagoda, value, bank title (hangul) Value (digit), bank title, year of minting 1966 August 16 1966 Still circulating Serie I (가)
Image:10 won 1970 observe.jpg Image:10 won 1970 reverse.jpg ₩10 22.86 mm 4.06 g High brass
65% copper
35% zinc
Plain Dabotap Pagoda, value, bank title (hangul) Value (digit), bank title, year of minting 1970 July 16 1970 Still circulating Serie II (나)
Image:50 won 1972 observe.jpg Image:50 won 1972 reverse.jpg ₩50 21.6 mm 4.16 g 70% copper
18% zinc
12% nickel
Milled Stalk of rice, value (hangul) Value (digit), bank title (hangul), year of minting 1972 December 1 1972 Still circulating Serie I (가)
Image:100 won 1970 observe.jpg Image:100 won 1970 reverse.jpg ₩100 24 mm 5.42 g Cupronickel
75% copper
25% nickel
Yi Sun-sin, value, bank title (hangul) Value (digit), year of minting 1970 November 30 1970
These images are to scale at 2.5 pixels per millimeter, a standard for world coins. For table standards, see the coin specification table.

[edit] 1982-1983 issued coins

With the inflation and the increasing popularity of vending machines 500 won coins were introduced in June 12, 1982 to replace the 500 won notes. In January 1983, with the purpose of standardizing the coin system, new series of 1, 5, 10, 50, and 100 won coins were issued, using the same layout as the 500 won coins, but conserving the coins old themes.<ref name=issue />

The 1 and 5 won coins are difficult to find in circulation today, and prices of consumer goods are rounded to 10's.

1982-1983 issued coins [3]
Image Value Technical parameters Description Date of BOK Series Designation
Obverse Reverse Diameter Mass Composition Edge Obverse Reverse first minting issue
Image:1 won 1983 observe.jpg Image:1 won 1983 reverse.jpg ₩1 17.2 mm 0.729 g 100% aluminium Plain Rose of Sharon, value (hangul) Value (digit), bank title, year of minting 1983 January 15 1983 Serie III (다)
Image:5 won 1983 observe.jpg Image:5 won 1983 reverse.jpg ₩5 20.4 mm 2.95 g High brass
65% copper
35% zinc
Plain Geobukseon, value (hangul) Value (digit), bank title, year of minting 1983 January 15 1983 Serie III (다)
Image:10 won 1983 observe.jpg Image:10 won 1983 reverse.jpg ₩10 22.86 mm 4.06 g Dabotap Pagoda, value (hangul)
Image:50 won 1983 observe.jpg Image:50 won 1983 reverse.jpg ₩50 21.6 mm 4.16 g 70% copper
18% zinc
12% nickel
Milled Stalk of rice, value (hangul) Value (digit), bank title, year of minting 1983 January 15 1983 Serie II (나)
Image:100 won 1983 observe.JPG Image:100 won 1983 reverse.JPG ₩100 24 mm 5.42 g Cupronickel
75% copper
25% nickel
Yi Sun-sin, value (hangul)
Image:500 won 1982 observe.jpg Image:500 won 1982 reverse.jpg ₩500 26.5 mm 7.7 g Crane, value (hangul) 1982 June 12 1982 Serie I (가)
These images are to scale at 2.5 pixels per millimeter, a standard for world coins. For table standards, see the coin specification table.

[edit] Banknotes

[edit] 1962-1969 issued notes

With the introduction of the new won in 1962 six new banknote denominations were issued: 1, 5, 10, 50, 100 and 500 won. The notes were printed in England by Thomas De La Rue Company. Later that year the Bank of Korea issued new 10 and 100 won notes to replace the British notes with notes printed domestically by the Korea Minting and Security Printing Corporation, as well as 10 and 50 jeon notes to help in the settlement of change in smaller transactions. In 1965 100 won notes (Serie III) were printed using intaglio printing techniques, for the first time on domestically printed notes, to reduce counterfeiting. Replacements for the British 500 won notes followed in 1966 also using intaglio printing, and for the 50 won notes in 1969 using litho-printing.<ref name=issue />

1962 Thomas De La Rue Series [4] (Korean)
Image Value Dimensions Main color Description Date of BOK Series Designation
Obverse Reverse Obverse Reverse issue withdrawal
Image:1 won observe.jpg Image:1 won reverse.jpg ₩1 94 x 50 mm Pink Bank of Korea's symbol Value June 10 1962 May 20 1970 None
Image:5 won observe.jpg Image:5 won reverse.jpg ₩5 Blue May 1 1969
Image:10 won serieI observe.jpg Image:10 won serieI reverse.jpg ₩10 108 x 54 mm Green September 1 1962 Serie I (가)
Image:50 won serieI observe.jpg Image:50 won serieI reverse.jpg ₩50 156 x 66 mm Orange Haegeumgang near Geoje Torch, value May 20 1970
Image:100 won serieI observe.jpg Image:100 won serieI reverse.jpg ₩100 Green Independence Gate February 14 1969
Image:500 won serieI observe.jpg Image:500 won serieI reverse.jpg ₩500 Grey Namdaemun February 3 1967
1962-1969 KOMSCO Series [5] (Korean)
Image:10 jeon observe.jpg Image:10 jeon reverse.jpg 10 jeon 90 x 50 mm Blue "Bank of Korea" and value (Korean) "Bank of Korea" and value (English) December 1 1962 December 1 1980 None
Image:50 jeon observe.jpg Image:50 jeon reverse.jpg 50 jeon Brown
Image:10 won serieII observe.jpg Image:10 won serieII reverse.jpg ₩10 140 x 63 mm Purple Cheomseongdae Geobukseon September 21 1962 October 30 1973 Serie II (나)
Image:50 won serieII observe.jpg Image:50 won serieII reverse.jpg ₩50 149 x 64 mm Green and orange / Blue Pagoda Gongweon in Seoul Beacon, Rose of Sharon March 21 1969 Serie II (나)
Image:100 won serieII observe.jpg Image:100 won serieII reverse.jpg ₩100 156 x 66 mm Green Independence Gate Gyeonghoeru Pavilion at Gyeongbok Palace November 1 1962 Serie II (나)
Image:100 won serieIII observe.jpg Image:100 won serieIII reverse.jpg Sejong the Great Main building of the Bank of Korea August 14 1965 December 1 1980 Serie III (다)
Image:500 won serieII observe.jpg Image:500 won serieII reverse.jpg ₩500 165 x 73 mm Brown Namdaemun Geobukseon August 16 1966 May 10 1975 Serie II (나)
These images are to scale at 0.7 pixels per millimeter, a standard for world banknotes. For table standards, see the banknote specification table.

[edit] 1972-1979 issued notes

With the economic developement from the 60s the value of the 500 won notes became lower, resulting in a greater use of cashier's checks with higher fixed denominations as means of payment, as well as an increased use of counterfeited ones.<ref name=issue />

Higher denomination notes of 5000 won and 10,000 won were first introduced in 1972 and 1973 respectively. The 5000 won notes featured the portrait of Joseon Dynasty scholar Yi I, while the 10,000 won notes featured King Sejong the Great. Those two notes incorporated new security features, including watermark, security thread, and ultraviolet response fibers. The release of 10,000 won notes was planned to be at the same time as the 5000 won notes but problems with the main theme delayed it by a year.<ref name=10,000wonhis>Brief History of current Korea notes in circulation; 10,000 won note (Flash and HTML). Bank of Korea. Retrieved on 2006-11-09.</ref>

Newly designed 500 won notes were also released in 1973 featuring the portrait of naval hero Yi Sun-sin. And the need of a medium denomination resulted in the issue of 1,000 won notes in 1975 featuring the portrait of Confucian scholar Yi Hwang.

The notes are printed using inglio printing.

1972-1973 Series [6] (Korean)
Image Value Dimensions Main color Description Date of BOK Series Designation Plate produced
Obverse Reverse Obverse Reverse Watermark issue withdrawal
Image:5000 won serieI observe.jpg Image:5000 won serieI reverse.jpg ₩5000 167 x 77 mm Brown Yi I Main building of the Bank of Korea July 1, 1972 December 1 1980 Serie I (가) By Thomas de la Rue <ref name=5000wonhis>Brief History of current Korea notes in circulation; 5,000 won note (Flash and HTML). Bank of Korea. Retrieved on 2006-11-09.</ref>
Image:10000 won serieI observe.jpg Image:10000 won serieI reverse.jpg ₩10 000 171 x 81 mm Brown Sejong the Great, Rose of Sharon Gyeonghoeru Pavilion at Gyeongbok Palace June 12, 1973 November 10 1981 Serie I (가) In Japan <ref name=10,000wonhis/>
1979 Series [7] (Korean)
Image:500 won 1973 observe.jpg Image:500 won 1973 reverse.jpg ₩500 159 x 69 mm Green and pink Yi Sun-sin, Geobukseon Yi Sun-sin's Shrine at Hyeonchungsa None September 1, 1973 May 12 1993 Serie III (다)
Image:1000 won serieI observe.jpg Image:1000 won serieI reverse.jpg ₩1000 163 x 73 mm Purple Yi Hwang, Rose of Sharon Dosan Seowon (Dosan Confucian Academy) August 14, 1975 Serie I (가) In Japan <ref name=1000wonhis>Brief History of current Korea notes in circulation; 1,000 won note (Flash and HTML). Bank of Korea. Retrieved on 2006-11-09.</ref>
Image:5000 won serieII observe.jpg Image:5000 won serieII reverse.jpg ₩5000 167 x 77 mm Orange Yi I Ojukheon in Gangneung June 1, 1977 May 12 1993 Serie II (나) In Japan <ref name=5000wonhis/>
Image:10000 won serieII observe.jpg Image:10000 won serieII reverse.jpg ₩10 000 171 x 81 mm Green Sejong the Great, Water clock Gyeonghoeru Pavilion at Gyeongbok Palace, Rose of Sharon June 15, 1979 May 12 1993 Serie II (나) In Japan <ref name=10,000wonhis/>
These images are to scale at 0.7 pixels per millimeter, a standard for world banknotes. For table standards, see the banknote specification table.

[edit] 1983-2002 issued notes

In 1983, as part of its policy of rationalizing the currency system, the Bank of Korea issued a new set of notes, as well as a new set of coins. Some of the note's most notable features were distinguishable marks for the blind under the watermark and the addition of machine readable language in preparation for mechanization of cash handling. They were also printed on better quality cotton pulp to reduce the production costs by extending their circulation life.<ref name=issue />

To cope with the deregulation of imports of colour printer and the increasing use of computers ans scanners, modified 5000 won and 10,000 won notes were released between 1994 and 2002 with various new security features, which included: colour-shifting ink, microprint, segmented metal thread, moiré, and EURion constellation.

The plates for the 5000 won notes were produced in Japan while the ones for the 1000 and 10,000 won notes were produced by the Korea Minting and Security Printing Corporation. They were all printed in intaglio.<ref name=10,000wonhis/><ref name=5000wonhis/><ref name=1000wonhis/>

With the release of a new set of notes, no plan as yet been made to withraw these notes from circulation.<ref name=issuenewnotes>Bank of Korea (2006-07-26). Issue of New 10,000-won Notes and 1,000-won Notes on January 22, 2007 (PDF). Retrieved on 2006-10-17.</ref>

1983-2002 Series [8] (Korean)
Image Value Dimensions Main Color Description Date of issue BOK Series Designation Modification
Obverse Reverse Obverse Reverse Watermark
Image:1000 won serieII observe.jpg Image:1000 won serieII reverse.jpg ₩1000 151 x 76 mm Purple Yi Hwang Dosan Seowon (Dosan Confucian Academy) Reversed portrait June 11, 1983 Serie II (나)
Image:5000 won serieIII observe.jpg Image:5000 won serieIII reverse.jpg ₩5000 156 x 76 mm Orange Yi I Ojukheon in Gangneung June 11, 1983 Serie III (다)
Image:5000 won serieIV observe.jpg Image:5000 won serieIV reverse.jpg June 12, 2002 Serie IV (라) Color-shifting ink on the dots for blinds, segmented metal thread, "© 한국은행 2002" under watermark
Image:10000 won serieIII observe.jpg Image:10000 won serieIII reverse.jpg ₩10 000 161 x 76 mm Green Sejong the Great, water clock Gyeonghoeru Pavilion at Gyeongbok Palace October 8, 1983 Serie III (다)
Image:10000 won serieIV observe.jpg Image:10000 won serieIV reverse.jpg January 20, 1994 Serie IV (라) Segmented metal thread, microprint under the water clock, moiré on watermark area, intaglio latent image
Image:10000 won serieV observe.jpg Image:10000 won serieV reverse.jpg Reversed portrait, Taeguk June 19, 2000 Serie V (마) Color-shifting ink on the dots for blinds, removal of moiré, EURion constellation, "© 한국은행 2000" under watermark
These images are to scale at 0.7 pixels per millimeter, a standard for world banknotes. For table standards, see the banknote specification table.

[edit] 2006-2007 issued notes

The Bank of Korea is releasing a set of smaller banknotes in a completely new design starting in 2006. The 5,000 won notes were already released on January 2, 2006, and the 1000 and 10,000 won notes are planned to be released in January 2007. The portraits and the color theme remains the same. But more security features are added, including <ref>Bank of Korea (2006-01-17). 1,000-won Note Design Unveiled to the Public (PDF). Retrieved on 2006-10-17.</ref> <ref>Bank of Korea (2006-05-18). 10,000-won Notes Design Unveiled to the Public (PDF). Retrieved on 2006-10-17.</ref>:

There are also a few other changes beside security features. On the observe side, the seal of the Bank changed from red, circle shaped to squared shaped of the same color of the note. This is due to popular complaints that the old seal is a remaining symbol of Japanese Imperialism.[citation needed] The seal did not change when the Japanese left Korea. On the reverse side, the English name of the Bank also changed from "The Bank of Korea" to "Bank of Korea". It is unknown whether this is intentional or a benign mistake.

Modification to ATMs and vending machines to accept the new noted are not planned to go underway until the release of the new 10,000 won notes in January, 2007. So currently the new 5000 won notes cannot be mechanically processed.<ref>Bank of Korea (2005-12-03). Issue of New 5,000-won Notes on January 2, 2006 (PDF). Retrieved on 2006-10-17.</ref>

The BOK's planned the released date of the new 1000 and 10,000 won notes so that they will be in full circulation by the Lunar New Year. They expect, at the time, that 60% of the ATMs will be modified to process the new notes.<ref name=issuenewnotes/>

2006-2007 Series [9] (Korean)
Image Value Dimensions Main Color Description Date of issue BOK Series Designation
Obverse Reverse Obverse Reverse Watermark
Image:1000 won serieIII observe.jpg Image:1000 won serieIII reverse.jpg ₩1000 136 x 68 mm Purple-blue Yi Hwang "Gyesangjeonggeodo"; a painting by Jeong Seon Reversed portrait, value January 22, 2007 (planned) Serie III (다)
Image:5000 won serieV observe.jpg Image:5000 won serieV reverse.jpg ₩5000 142 x 68 mm Reddish-yellow Yi I A painting of a watermelon and cockscombs produced by Yi I's mother Sin Saimdang January 2, 2006 Serie V (마)
Image:10000 won serieVI observe.jpg Image:10000 won serieVI reverse.jpg ₩10 000 148 x 68 mm Green Sejong the Great, folding screen for Joseon-era kings, and text from the second chapter of Yongbieocheonga, the first work of literature written in Korean Globe of an Armillary sphere of the Joseon Dynasty and Cheonsang Yeolcha Bunyajido in the background January 22, 2007 (planned) Serie VI (바)
These images are to scale at 0.7 pixels per millimeter, a standard for world banknotes. For table standards, see the banknote specification table.

[edit] Historical exchange rate

Shortly after the end of the Japanese occupation on August 15 1945 the won got pegged to the US dollar instead of the Japanese yen. At the reintroduction of the won in 1962 its value was at 1 USD = ₩125. The exchange rate had inflated to a fixed 1 USD = ₩580 by early 1980, where efforts were initiated to lead to a floating currency. The won was finally allowed to float on December 24 1997 when an agreement was signed with the International Monetary Fund.<ref>Kurt Schuler (2004-02-29). Tables of modern monetary history: Asia. Currency Boards and Dollarization. Retrieved on 2006-11-16.</ref> Shortly after, the won got devaluated to almost half of its value, as part of the East Asian financial crisis.

Current KRW exchange rates
Use Yahoo! Finance: AUD CAD CHF EUR GBP HKD JPY USD
Use XE.com: AUD CAD CHF EUR GBP HKD JPY USD
Image:KRW-USD 1989-.png Image:JPY-KRW 1989-.png

[edit] References

<references/>

  • (2005) George S. Cuhaj, (S. editor): Standard Catalog of World Paper Money, Vol. 3: Modern Issues, 1961-Date, 11th ed., KP Books. ISBN 0-89689-160-7.
  • (2003) Chester L. Krause, Cliffor Mischler, Colin R. Bruce II, et al. (editors): 2004 Standard Catalog of World Coins: 1901-present, 31st ed., Krause Publications. ISBN 0-87349-593-4.
  • Albert Pick (1996). Neil Shafer, George S. Cuhaj, Colin R. Bruce II (editors): Standard Catalog of World Paper Money: General Issues to 1960, 8th ed., Krause Publications. ISBN 0-87341-469-1.

[edit] External links


New won
Preceded by:
South Korean hwan
Reason: inflation
Ratio: 1 won = 10 hwan
Currency of South Korea
1962
Succeeded by:
Current


Historical currencies of Korea Image:Unification flag of Korea.svg
Mun
–1892
Yang
1892–1902
Won
1902–1910
Yen
1902–1945
N. old won
1945–1959
N. new won
1959–present
S. old won
1945–1953
Hwan
1953–1962
S. new won
1962–present
See also Etymology of the Korean currencies

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East Chinese yuan | Hong Kong dollar | Japanese yen | Macanese pataca | North Korean won | South Korean won | New Taiwan dollar
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ca:Won sud-coreà

de:Won (Südkorea) ko:대한민국 원 nl:Zuid-Koreaanse won pt:Won sul coreano ru:Южнокорейская вона sv:Sydkoreansk won th:วอน (สกุลเงินเกาหลีใต้) tr:Won zh:韓圓

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