Central Bank of the Democratic People's Republic of Korea

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Central Bank of the Democratic People's Republic of Korea
조선민주주의인민공화국중앙은행
Joseon Minjujueui Inmin Gonghwaguk Jungang Eunhaeng
Headquarters Pyongyang
President Kim Chon-gyun (Since April 2014)
Central bank of Democratic People's Republic of Korea
Currency North Korean won
KPW (ISO 4217)
Central Bank of the Democratic People's Republic of Korea
Chosŏn'gŭl 조선민주주의인민공화국중앙은행
Hancha 朝鮮民主主義人民共和國中央銀行
Revised Romanization Joseon Minjujueui Inmin Gonghwaguk Jungang Eunhaeng
McCune–Reischauer Chosŏn Minjujuŭi Inmin Konghwaguk Chungang Ǔnhaeng

The Central Bank of the Democratic People's Republic of Korea is North Korea's central bank. Established on December 6, 1947, it issues the North Korean wŏn. The Bank is subordinated to the Cabinet of North Korea. Paek Ryong-chon has been the bank's president since 2011.[1]

History[edit]

On February 15, 1946, a central bank of North Korea was announced, which was to be under the control of the Soviet military.[2] However, the bank failed to accomplish its objectives, being unable to meet its costs of operation, and the 100 million wŏn capitalisation was ineffective.[3] The North Korean Interim People's Committee did not look upon the bank favourably, and chose instead to work through the Farmers' Bank, which also existed at the time.[3] By late 1946, banking functions were consolidated into two main institutions, the Central Bank and Farmer's Bank. In June 1947, around 1,000 million wŏn was concentrated in the Central Bank, allowing it to extend credits totalling 900 million wŏn for economic rehabilition.[4] The consolidation reflected a return to the original objectives of the People's Committee, which wanted closer control over the economy; any banking people opposed to the changes within the system were removed from their posts.[4] On December 6, 1947, a comprehensive program of currency reform was announced.

In 1959, the Central and Farmers' banks were merged to form the Central Bank of the Democratic's People's Republic of Korea. The Foreign Trade Bank was established to handle the Central Bank's international business.[5]

The Central Bank has over 220 branches.[5]

References[edit]

  1. ^ "North Korean Economy Watch & Central Bank". 
  2. ^ McCune, George M. (2007). Korea Today. READ BOOKS. p. 193. ISBN 978-1-4067-2764-7. 
  3. ^ a b McCune, 2007, p. 194.
  4. ^ a b McCune, 2007, p. 195.
  5. ^ a b Hoare, James; Pares, Susan (2005). A political and economic dictionary of East Asia. Routledge. p. 31. ISBN 978-1-85743-258-9.