50,000-won note balance tops record 70 tln won: BOK

The volume of 50,000-won ($45.15) notes in circulation has exceeded 70 trillion won for the first time on growing demand and increased supply, the central bank's data showed Thursday.

The outstanding balance of South Korea's highest-denominated banknote, came to 70.43 trillion won as of the end of July, up 0.8 percent from a month earlier, according to the Bank of Korea. 

Since the bill was introduced in June 2009, its supply has been on a rapid rise. The amount totaled 60 trillion won in September 2015.

It excludes notes returned to the BOK after being printed and circulated.

The outstanding balance of the entire currency here stood at 91.92 trillion won in July, 76.6 percent of which is 50,000-won notes.

On the other hand, that of 10,000-won notes fell 1.3 percent on-month to 16.23 trillion won last month. Those of 5,000-won and 1,000-won notes also dropped 0.4 percent and 0.1 percent, respectively.

Just around half of the 50,000-won notes issued by the BOK is returned to the bank amid concerns that some of the rest many be channeled into the underground economy.

The recovery rate recorded 50.7 percent in the first half of this year, far below that of 111.2 percent for 10,000-won notes,

93.5 percent for 5,000 won and 94.7 percent for 1,000 won.

BOK officials said demand for 50,000-won notes has apparently increased, partly affected by drawn-out low interest rates.

"However, it's difficult to conclude whether or how many 50,000-won notes flow into the underground economy," an official said. "The recovery rate is steadily rising, compared to the past." (Yonhap)